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1. Shine Bright Company has three product lines-D, E, and F. The following information is available: Shine Bright Company is thinking of dropping product line

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1. Shine Bright Company has three product lines-D, E, and F. The following information is available: Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and does not replace it, what effect will this have on operating income? Should they drop Product F? ** Show your work to support your answer. 2. Shine Bright Company has three product lines-D, E, and F. The following information is available: Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and can use the space formerly used to produce product F to generate $17,000 of net income per year, what effect will this have on operating income? Should they drop Product F ? **Show your work to support your answer. 3. Lincoln Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Erickson Company has offered to sell 5,000 units of the same part to Lincoln Company for $13 per unit Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable, what should Lincoln Company do, make it or buy it? **Show your work to support your

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