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Aqua Life Jackets, Inc. has two product lines. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin
Aqua Life Jackets, Inc. has two product lines. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $365,000 $205,000 $160,000 $102.000 $58.000 Adult jackets $275,000 $165,000 $110,000 $50,000 $60,000 Velcro jackets $90,000 $40,000 $50,000 $52,000 $(2.000) Assuming the selsce jackets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the velsse jackets line is used to double the production of adult jackets, how will operating income be affected
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