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QUESTION 1 The firm IL VECOST ACCOUNTING, Co produces COST ACCOUNTİNG TUTORING as vell a a elated product CMA TESTPREP C A ES The product COST ACCOUNTING TUTORING have $1,200,000 in revenue, and CMA TEST PREP CLASSES have $4,000,000 revenue. Costs for COST ACCOUNTING TUTORING are $2,100,000, and costs for for CMA TEST PREP CLASSES are $2.7 If the firm drops COST ACCOUNTING TUTORING, then revenue for CMA TEST PREP CLASSES will decrease by 20%. Assume costs for CMA 50,000. TEST PREP CLASSES will not change. f the firm drops cOST ACCOUNTING TUTORING it cannot avoid $70,000of the cost of producing COST ACCOUNTING TUTORING. It is $30,000 0 a. less profitable to keep the cost accounting tutoring product than to drop it t is $100,000 O b. less profitable to keep the cost accounting tutoring product than to drop it. It is $100,000 0 c. more profitable to keep the cost accounting tutoring product than to drop it. It is $30,000 O d. more profitable to keep the cost accounting tutoring product than to drop it.
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Answer #1

answer : it is $30,000

a) less profitable to keep the cost accounting tutoring than drop it

explanation

without dropping the cost accounting tutoring ost accountingCMA TEST toutoring coS sales revenue cost profit/(loss) PREtotal

here if you keep the cost accounting tutoring it is 30000 less profitable than drop it

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