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Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales revenue $70,000 $60,000 $30,000 Variable costs (40,000) (115.000) (10.000)

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Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales revenue $70,000 $60,000 $30,000 Variable costs (40,000) (115.000) (10.000) Contribution margin $30,000 $45,000 $20,000 Fixed costs (15.000) (5.000) (23.000) Operating income (loss) $15,000 $40,000 $(3,000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $21,000 of total fixed costs could be eliminated by O A. Operating income will decrease by $1,000 O B. Operating income will increase by $1,000. oc. Operating income will increase by $23,000 OD. Operating income will decrease by $23,000. Click to select your answer. e-D, E, and F. The following information is available: $60,000 $30,000 (15.000) (10.000) $45,000 $20,000 (5.000) (23.000) $40,000 $13,000) duct line F because it has an operating loss. Assume that $21,000 of total found costs could be eliminated by dropping F What effect would this decision have on operating income? .000 1000 3,000 3.000 MacBook Air

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