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How much are the relevant costs in the decision

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Reference no: EM133174069

Question - Vaughn Manufacturing has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2013:

Sales $1390000

Variable expenses 910000

Fixed expenses 600000

Net loss (120000)

Required - If this product line is eliminated, 30% of the fixed expenses can be eliminated. How much are the relevant costs in the decision to eliminate this product line?

Reference no: EM133174069

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