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Corn Crunchers has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2019: Sales $1,400,000 Variable expenses
Corn Crunchers has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2019: Sales $1,400,000 Variable expenses 920,000 Contribution Margin 480,000 Fixed expenses 600,000 Net income (loss) $ (120,000) If this product line is eliminated, 30% of the fixed expenses can be eliminated. What is the incremental effect on net income if the division is dropped?
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