What recommendation would you make to management

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Paxton Products has three productlines: A, B, and C.






$ 90,000

$ 150,000

$ 200,000

$ 440,000

Variable costs





Contribution margin





Fixed costs





Net income





Management is considering dropping product lines A and B.If 50% of the fixed costs for dropped products could be avoided, what recommendation would you make to management? Quantify you answer.

Reference no: EM13256673

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