Asked by elena gonzalez on Jul 28, 2024
Verified
Assume that dropping Product JYMP will have no effect on other products.The annual financial advantage (disadvantage) for the company of eliminating this product should be:
A) $40,000
B) ($132,000)
C) ($92,000)
D) ($172,000)
Eliminating Product
The process of discontinuing the production and sale of a product, typically due to poor sales, profitability, or strategic realignment.
- Investigate the economic ramifications of ceasing the availability of a product.
Verified Answer
DL
Dmiria LivasJul 31, 2024
Final Answer :
C
Explanation :
By dropping the product, the company will forego $92,000 in net financial benefits and result in a net financial (disadvantage).
Learning Objectives
- Investigate the economic ramifications of ceasing the availability of a product.
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