Which of the following statements is true of the plc?
1. maturity is the period when s...
Business, 29.10.2019 21:31 theh301234
Which of the following statements is true of the plc?
1. maturity is the period when sales fall off but profits continue to rise.
2. profits are nonexistent in the growth stage.
3. growth is a period of rapid rise in sales but profits are lower than sales.
4. throughout the product introduction stage, sales are zero.
5. during the product decline stage, sales and profits drop in an identical manner.]
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Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:
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