The Tangier Company is considering eliminating the following product line: Product AXP Sales $ 44,000 Less variable costs: Raw materials 27,000 Direct labor 6,600 Contribution margin $ 10,400 Less fixed costs: Production costs allocated to products 15,800 Profit (Loss) $ (5,400) What amount of cost is avoidable if Tangier outsources production of this product
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Home » Business » The Tangier Company is considering eliminating the following product line: Product AXP Sales $ 44,000 Less variable costs: Raw materials 27,000 Direct labor 6,600 Contribution margin $ 10,400 Less fixed costs: Production costs allocated to products