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Bellinger & Betts LLP has three models: X Y and Z. The following information is available Model X Sales Revenue $64.000 Variable Expenses $25.000 Contribution
Bellinger & Betts LLP has three models: X Y and Z. The following information is available Model X Sales Revenue $64.000 Variable Expenses $25.000 Contribution Man 39.000 Fixed Expenses $14.000 Modely $40,000 $13,000 $27,000 $14,000 Modelz 321000 $12.000 32000 1514.000 Operating Income $25.000 Loss) $13,000 315.000 Bellinger & Betts LLP is thinking of discontinuing model because it is reporting an operating loss. All foxed costs are unavoidable. Assuming Bellinger Bets LP discontinues line 2 totalfoed costs will remain unchanged and the production and sales of model wit increase by 50% What effect will this luve on operating Income for Bollinger & Betts LLP Increase by $5.000 Increase ty $70,000 Increase by $4,500 Increase by $11.000
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