Question: Moving to another question will save this response. Question 1 6 A company produces and sells 1 6 , 0 0 0 units of Product

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Question 16
A company produces and sells 16,000 units of Product x each month. The selling price of Product x is $30 per unit, and variable expenses are $24 per unit. A study has 1 made concerning whether Product x should be discontinued. The study shows that $70,000 of the $110,000 in monthly fixed expenses charged to Product x would not avoidable even if the product was discontinued. If Product x is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this produ be:
a. $54,000
b. $14,000
c.($56,000)
d.($54,000)
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