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arget Corporation has two product lines, Air Fryers and Instant Pots, as follows: Air Fryer Instant Pot Total Sales revenue $620,000 $255,000 $875,000 Variable expenses

arget Corporation has two product lines, Air Fryers and Instant Pots, as follows:

Air Fryer Instant Pot Total
Sales revenue $620,000 $255,000 $875,000
Variable expenses $440,000 $210,000 $650,000
Contribution margin $180,000 $45,000 $225,000
Fixed expenses $75,000 $75,000 $150,000
Operating income (loss) $105,000 $(30,000) $75,000

If Target Corporation can eliminate fixed costs of $34,000 and increase the sale of Air Fryers by 6300 units at a selling price of $30 per unit and a contribution margin of $12 per unit, then discontinuing the Instant Pots should result in which of the following?

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Decrease in total operating income of $30,600

Increase in total operating income of $30,600

Increase in total operating income of $64,600

Decrease in total operating income of $64,600

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