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Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $50,000 as follows: Eliminating the Drafty product line would eliminate
Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $50,000 as follows: Eliminating the Drafty product line would eliminate $71,000 of direct fixed costs. The $60,000 of common fixed costs would be redistributed to Blowing Sand's remaining product lines. Requlred: Will Blowing Sand's net operating income increase or decrease if the Drafty model is eliminated? By how much
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