Strait co. manufactures office furniture. during the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. in the month of lowest production the company made 1,125 desks at a cost of $38,000. using the high-low method of cost estimation, total fixed costs are

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: