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Aroma Company is considering a plan to discontinue their biscuit line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The

Aroma Company is considering a plan to discontinue their biscuit line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The effect on net income of no longer manufacturing biscuits is a:

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$0

$50,000 increase

$50,000 decrease

$150,000 increase

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