Question: please show work and formulas used Question 2: A study has been conducted to determine if Product A should be dropped because this product currently

please show work and formulas used

Question 2: A study has been conducted to determine if Product A should be dropped because this product currently reports an operating loss of $100,000. Sales of this product total $400,000; variable expenses total $280,000. Fixed expenses charged to the product total $220,000. The company estimates that 60% of these fixed expenses are avoidable if this product is dropped. Required 1: What is the annual financial advantage (disadvantage) of discontinuing the Product A? Required 2: Should the production and sale of Product A be discontinued? Why

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