Managerial Accounting

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Privos Partners: Change to Profits if V78 is Eliminated


Privos Partners wants to eliminate the V78 Product Line. The sales and costs for the V78 product line are shown below.

V78 Product Line
Sales \$1,200,000
Variable costs \$990,000
Fixed costs \$270,000
Loss (\$60,000)

What will be the change to Privos Partners if V78 is eliminated, assuming that all of the fixed costs are unavoidable?