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Dominion Ltd. is thinking of dropping one of its product lines, product line A. The following information is available: Item Product Line A Sales I

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Dominion Ltd. is thinking of dropping one of its product lines, product line A. The following information is available: Item Product Line A Sales I $21,000 Variable costs 15,250 Fixed costs 6,000 If Dominion Ltd. drops product line A, 71% of the fixed costs would be avoidable. Assuming the company drops line A and does not replace it, the change in operating income will be

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