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Ace Parts and Supply makes a variety of car parts. The company produces 6 , 5 0 0 A 9 0 parts each year. Each
Ace Parts and Supply makes a variety of car parts. The company produces A parts each year. Each A sells for $ and has a contribution margin of $ Currently, $ of fixed manufacturing overhead is allocated to the A product line. If Ace Parts and Supply discontinues the A product line, $ of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A product line were to be discontinued? A Increase in total operating income of $ B Increase in total operating income of $ C Decrease in total operating income of $ D Decrease in total operating income of $
Ace Parts and Supply makes a variety of car parts. The company produces A parts each year. Each A sells for $ and has a contribution margin of $ Currently, $ of fixed manufacturing overhead is allocated to the A product line. If Ace Parts and Supply discontinues the A product line, $ of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A product line were to be discontinued?
A Increase in total operating income of $
B Increase in total operating income of $
C Decrease in total operating income of $
D Decrease in total operating income of $
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