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A company has two different products that sell to separate markets. Financial data are as follows: Revenue Variable costs Fixed costs (allocated) Operating income

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A company has two different products that sell to separate markets. Financial data are as follows: Revenue Variable costs Fixed costs (allocated) Operating income (loss) Product A Product B Total $16,000 $9,400 $25,400 (6,000) (9,500) (15,500) (2,000) (2,000) (4,000) $8,000 $(2,100) $5,900 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. O True O False

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