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Eagan Company has three product lines, A B and C. The following information is available: Sales Variable costs Contribution margin $30,000 19.000 $ 11,000 B

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Eagan Company has three product lines, A B and C. The following information is available: Sales Variable costs Contribution margin $30,000 19.000 $ 11,000 B $19,000 10.500 $ 8,500 C $10,500 3.000 $3,000 Fixed costs: Avoidable Fixed costs: Unavoidable Operating income 5,000 2.500 $.3.500 4,500 6.000 $5.000 1,000 750 $1.250 Eagan is thinking of dropping product line B since it is losing money. Assuming Eagan dropsline B and does NOT replace it, the operating income will Select one: A decrease $ 4,000 B. decrease $10.500. Cincrease $ 2000, D. not change

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