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A restaurant is considering dropping its breakfast meal period. On the segmented contribution margin income statement, breakfast shows a contribution margin of $100,000 and fixed
A restaurant is considering dropping its breakfast meal period. On the segmented contribution margin income statement, breakfast shows a contribution margin of $100,000 and fixed costs of $180,000. If breakfast is dropped, the company would no langer incur any of breakfast's total fixed costs of $180,000. Based on this information, which one of the following statements is false? Select one: a. Breakfast's fixed costs of $180,000 are relevant to the decision. b. The restaurant's operating income will change if breakfast is dropped. c. Keeping breakfast will increase the company's operating income by $80,000. d. From a financial perspective, the restaurant should drop breakfast
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