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By what amount will Sunshine Products cash flow change

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Reference no: EM133071671

Question - Sunshine Products is a multiproduct firm. The revenues of a single product are $200,000 when 10,000 units are sold. Variable costs are $16 per unit. Direct fixed expenses of $25,000 consist primarily of depreciation on equipment specialised to the product. By what amount will Sunshine Products' cash flow change if the product is dropped?

Reference no: EM133071671

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