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The Management of Freshwater Corporation Is Considering Dropping Product C11B

question 43

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The management of Freshwater Corporation is considering dropping product C11B. Data from the company's accounting system appear below: The management of Freshwater Corporation is considering dropping product C11B. Data from the company's accounting system appear below:   All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $211,000 of the fixed manufacturing expenses and $122,000 of the fixed selling and administrative expenses are avoidable if product C11B is discontinued. -According to the company's accounting system,what is the net operating income earned by product C11B? A) $74,000 B) $(521,000)  C) $(74,000)  D) $521,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $211,000 of the fixed manufacturing expenses and $122,000 of the fixed selling and administrative expenses are avoidable if product C11B is discontinued.
-According to the company's accounting system,what is the net operating income earned by product C11B?

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A business model that operates online, often without a traditional physical presence, relying heavily on information and communication technologies.

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A project or enterprise undertaken for a limited duration, often to achieve a specific goal or address a particular need.

Special Expertise

A specific skill set or knowledge that differentiates an individual or organization in a particular area.

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A theory or approach that emphasizes the need to adapt management strategies or organizational structures based on the current environment and specific situations.

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