Assume That Discontinuing Product J Would Result in a $100,000

question 58

Multiple Choice

Assume that discontinuing Product J would result in a $100,000 increase in the contribution margin of other product lines.How many units of Product J would have to be sold next year for the company to be as well off as if it just dropped Product J and enjoyed the increase in contribution margin from other products?

• A) 2,500 units.
• B) 11,875 units.
• C) 16,125 units.
• D) 15,500 units.

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