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Creative Lawn Ornaments sells two categories of lawn structures: Fountains and Obelisks. For the current year, Creative reported the following results: Creative's owner is pleased
Creative Lawn Ornaments sells two categories of lawn structures: Fountains and Obelisks. For the current year, Creative reported the following results: Creative's owner is pleased with the overall profit, but is concerned about the loss on the Obelisks line and is considering eliminating it. The owner believes that if the Obelisk sales are discontinued he will be able to increase sales of Fountains by 20%. If the Obelisk line is discontinued, all of its traceable fixed costs will be avoided. Required: Evaluate whether Creative Lawn Ornaments should discontinue its line of Obelisk structures. Show all calculations
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