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A company has two different products that sell to separate markets. Financial data are as follows: Revenue Variable costs me Fixed costs (allocated) Operating
A company has two different products that sell to separate markets. Financial data are as follows: Revenue Variable costs me Fixed costs (allocated) Operating income (loss) Product A Product B Total $16,000 $9,000 $25,000 (7,000) (9,200) (16,200) (3,000) (1,000) (4,000) $6,000 $(1,200) $4,800 pa Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. Because the contribution margin of Product B is negative, it should be dropped. M O True O False al Se
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