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Cul Giant Company has three products, A, B, and C. The following information is available: Product A Product B Product C Sales $70,000 $97,000

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Cul Giant Company has three products, A, B, and C. The following information is available: Product A Product B Product C Sales $70,000 $97,000 $23,000 > Variable costs 37,000 51,000 15,000 Contribution margin 33,000 46,000 8,000 N Fixed costs: Avoidable Unavoidable Operating income 10,000 20,000 2,000 7,000 $16,000 12,000 $14,000 9,400 $(3,400) Giant Company is thinking of dropping Product C because it is reporting a loss Assuming Giant drops Product C and does NOT replace it, operating income will our Du O A. increase by $3,400 OB. increase by $2,000 OC. decrease by $6,000 OD. decrease by $11,400 "rent COAY

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