Question: SALES= 800 VARIABLE COSTS= 320 FIXED COSTS= 580 CASE 1= IF WE ELIMINATE BAD, ALL FIXED COSTS STAY CASE 2= IF WE ELIMINATE BAD, 80%

SALES= 800

VARIABLE COSTS= 320

FIXED COSTS= 580

CASE 1= IF WE ELIMINATE BAD, ALL FIXED COSTS STAY

CASE 2= IF WE ELIMINATE BAD, 80% OF FIXED COSTS ARE ELIMINATED'

CASE 3= IF WE ELIMINATE BAD, 90% FIXED COST WILL BE ELIMINATED

FOR EACH CASE, DECIDE IF TO KEEP OR TO DUMP, EXPLAIN WHY

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