What would be the total annual financial impact

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Question - A company is considering dropping a product line. Data from the company's budget for the upcoming year for this product line appear below:

Sales Revenue: $543,000

Variable costs: $159,000

Fixed manufacturing costs: $232,000

Fixed selling and administrative costs: $130,000

Further investigation has revealed that 51% of the fixed manufacturing costs and 33% of the fixed selling and administrative expenses are avoidable if the product were discontinued.

What would be the total annual financial impact from eliminating this product?

Reference no: EM133053948

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