How much are the relevant costs in the decision to eliminate


Question: Canadian Corn has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2016: Sales $350,000 Variable expenses 230,000 Fixed expenses 180,000 Net loss $(60,000) 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? Question options: $410,000 $284,000 $335,000 $54,000

 

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Accounting Basics: How much are the relevant costs in the decision to eliminate
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