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Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $35,000 as follows: Drafty Model $200,000 140,000 $60,000 55,000 5,000

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Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $35,000 as follows: Drafty Model $200,000 140,000 $60,000 55,000 5,000 40,000 35,000 Sales revenue Less: Variable costs Contribution margin Segment margin Net operating income (loss) Less: Direct fixed costs Less: Common fixed costs Eliminating the Drafty product line would eliminate S55,000 of direct fixed costs. The $40,000 of common fixed costs would be redistributed to Blowing Sand's remaining product lines Will Blowing Sand's net operating income increase or decrease if the Drafty model is eliminated? By how much? Total Profit by

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