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Dilo Plc Ltd. manufactures two products, Regular and Super. The results of operations from the most recent year are as follows Regular Super Total Units

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Dilo Plc Ltd. manufactures two products, Regular and Super. The results of operations from the most recent year are as follows Regular Super Total Units 8,000 2,80010,800 Sales $216,000 $588,000 $804,000 Less: Cost of Goods Sold $144,000 $294,000 $438,000 Gross Margin $72,000 $294.000 $366,000 Less: Selling Expenses $72,000 5114,8005186,800 Operating Income $0 $179.2005179,200 Fixed manufacturing costs included in cost of goods sold amount to $5 per unit for Regular and $15 per unit for Super other manufacturing costs are variable. Variable sering expenses are 52 per unit for Regular and $25 per unit for Super remaining selling expense amounts are foed. Dilo wants to drop the Regular product line. If the line is dropped, company wide fixed manufacturing costs would fall by 10%. Regular is discontinued operating income would decrease by $ 17,800 (enter for amount if no changel

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