Question

Lusk Corporation produces and sells 15,900 units of Product X each month. The selling price of Product X is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $71,000 of the $109,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:__________
A) ($57,400)
B) $51,600
C) $13,600
D) ($51,600)

Answer 1

I think the answer is d

Answer 2

The answer to this question is d