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

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Eagan Company has three product lines, A, B and C. The following information is available: Sales Variable costs Contribution margin A $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 drops line B and does NOT replace it, the operating income will Select one: A. decrease $ 4.000. B. decrease $10,500, C. Increase $ 2,000. D. not change

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