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Black Productions has three models. D, E, and F. The following information is available: Model D Model E Model F Sales revenue $65,000 $33,000 $24,000
Black Productions has three models. D, E, and F. The following information is available: Model D Model E Model F Sales revenue $65,000 $33,000 $24,000 Variable expenses $32.000 $13,000 $14.000 Contribution margin $33,000 $20,000 $10.000 Fixed expenses $16,000 $16,000 $16,000 Operating income (loss) $17,000 $4,000 $(6.000) Black Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable Black Productions discontinues model F and rents the space formerly used to produce product F for $15,000 per year, what effect will this have on operating income? OA Increase $5,000 B. Increase $21,000 OC. Decrease $5,000 D. Decrease $21,000 When using the high-low method, what is the correct order of the following three steps? I write the cost equation ii. find the vertical intercept il find the slope O A. , , OB. , , OC. , , OD
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