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Eagan Company has three product lines, A, B and C. The following information is available: A B C Sales $30,000 $19,000 $10,500 Variable costs 19,000

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Eagan Company has three product lines, A, B and C. The following information is available: A B C Sales $30,000 $19,000 $10,500 Variable costs 19,000 10,500 3,000 Contribution margin $ 11,000 $ 8,500 $ 3,000 Fixed costs: Avoidable 5,000 4,500 1,000 Fixed costs: Unavoidable 2,500 6,000 750 Operating income $ 3,500 $ 5,000 $ 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

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