ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Vintage Camera T Temple MIS G is
You have the following data for product X: sales
revenue $14,000, allocated fixed costs $12,000,
variable costs $20,000. You cannot increase the price
of product X or improve the production process to
increase profitability. What should you do about
product X?
O do nothing - unprofitable products are just one of the
costs of doing business
O keep the product both in the short term and in the long
term
O keep the product in the short term and drop it in the long
term
O drop the product both in the short term and in the long
term
O drop the product in the short term and keep it in the long
term
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