Question: This is an AI Generated Question. ABC Electronics has been manufacturing a gadget for the past 3 years. However, due to declining sales and increased

This is an AI Generated Question.
ABC Electronics has been manufacturing a gadget for the past 3 years. However, due to declining sales and increased competition, the company is now evaluating whether it should continue or discontinue production.
If ABC Electronics discontinues production, they will avoid the costs of raw materials ($50,000 per month) and the direct labor costs associated with the production of the gadget ($30,000 per month).
Is this cost avoidable or unavoidable?

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