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7, Alta Loma Industries has three product lines, A, B, and C. The following information is available: Sales Variable costs Contribution margin Traceable fixed costs

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7, Alta Loma Industries has three product lines, A, B, and C. The following information is available: Sales Variable costs Contribution margin Traceable fixed costs $100,000 76,000 $24,000 2,000 $90,000 $36,000 27.000 $9,000 3,000 $6,000 8.400 48,000 $42,000 27000 Segment mard costs (allocat.000 $15,000 6,000 $15,000 $9.000 $6.000 2400) The company thinks it can eliminate product line C and double its production and sales of product line B. There is enough Common fixed costs (allocated) Operating income 9,000 capacity to double the production and sales of product line B without increasing th e current fixed costs. If these changes are made, the total operating income of Alta Loma Industries will increase by how much? a. $18,000 b. $42,000 c. $24,000 d. $19,000 e. $36,000 https://www.coursehero.com/file/26201 55S/ACC-2203-2014-Final-Version-E-Part-2pdt

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