What is the financial advantage or disadvantage

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Question - If slow cookers are discontinued, 75% of the fixed costs can be avoided. At the same time, discontinuing slow cookers will have no effect on other products. What is the financial advantage or disadvantage of discontinuing slow cookers?

Sales $80,000

Less expenses:

Variable costs $32,000

Fixed costs 60,000

92,000

Net operating loss $(12,000)

Reference no: EM132963839

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