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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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