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D E Mission Company has three product lines: D, E, and F. The following information is available: F Sales revenue $85,000 $47,000 $ 20,000 Variable
D E Mission Company has three product lines: D, E, and F. The following information is available: F Sales revenue $85,000 $47,000 $ 20,000 Variable expenses $42,000 $21,000 $12,000 $43,000 $26,000 $ 8,000 Fixed expenses $12,000 $15,000 $17,000 Operating income (loss) $31,000 $11,000 $19,000) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable Mission Company discontinues product line F and rents the space formerly used to produce product F for $22,000 per year , what affect will this have on operating income? A. Increase $14,000 OB. Increase $31,000 OC. Decrease $14,000 OD. Increase $47.000
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