Homework Answers
Contribution margin = Sales - Variable expenses
= $960,000 - $381,000
= $579,000
| Contribution margin lost | ($579,000) |
| Add : Savings from avoidable fixed costs | |
| Fixed manufacturing expenses | $219,000 |
| Fixed selling and administrative expenses | $180,000 |
| Financial disadvantage from eliminating the product | ($180,000) |
The answer is ($180,000)
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