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9. Garrett Company provided the following information: Product 1 Product 2 Units sold 10,000 20,000 Price $20 $15 Variable cost per unit $10 $10 Direct

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9. Garrett Company provided the following information: Product 1 Product 2 Units sold 10,000 20,000 Price $20 $15 Variable cost per unit $10 $10 Direct fixed cost $35,000 $75,000 Common fixed cost totaled $46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by $300,000. b. Overall operating income will increase by $2,600. c. Overall operating income will decrease by $25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by $27,600

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