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Giant Company has three products, A, B, and C. The following information is available: Product A $70,000 37,000 Product B $97,000 51,000 Product C $23,000

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Giant Company has three products, A, B, and C. The following information is available: Product A $70,000 37,000 Product B $97,000 51,000 Product C $23,000 15,000 Sales Variable costs Fixed costs: Avoidable Unavoidable 10,000 7,000 20,000 12,000 4,400 9,400 Giant Company is thinking of dropping Product C because it is reporting a loss. Assuming Giant drops Product C and does NOT replace it operating income will I Page 9 of 25 Next Page Previous Page

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