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Refer to the exhibit.

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Refer to the exhibit.

An income statement summary for a particular product shows the following:

In which of the following circumstances would it be appropriate to continue to produce the product?

A.

When avoidable fixed costs are at least £400

B.

When net profit is improved to greater than zero.

C.

When contribution is greater than zero.

D.

When avoidable fixed costs are less than £900

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  • Update on: Jan 7, 2026
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TESTED 07 Jan 2026