Giant Company has threeproducts, A,B, and C. The following information isavailable:<\/p>
Cookbook<\/strong><\/p> Travel Book<\/strong><\/p> Classics<\/strong><\/p> Sales<\/p> $65,000<\/p> $100,000<\/p> $23,000<\/p> Variable costs<\/p> 37,000<\/p> 53,000<\/p> 14,000<\/p> Contribution margin<\/p> 28,000<\/p> 47,000<\/p> 9,000<\/p> Fixedcosts:<\/p> Avoidable<\/p> 7,000<\/p> 17,000<\/p> 5,000<\/p> Unavoidable<\/p> 8,000<\/p> 14,000<\/p> 5,400<\/p> Operating income<\/p> $13,000<\/p> $16,000<\/p> $(1,400)<\/p> <\/strong>Giant Company is thinking of dropping Product C because it is reporting a loss. Assuming Giant drops Product C and does NOT replaceit, operating income will________. <\/p> A.<\/strong><\/p> increase by $1,400 <\/p> B.<\/strong><\/p> increase by $5,000 <\/p> C.<\/strong><\/p> decrease by $10,400<\/p> D.<\/strong><\/p> decrease by <\/p>",
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"related_book": {
"title": "Intermediate Accounting",
"isbn": "470964731, 978-0470964736, 978-0470161012",
"edition": "9th Canadian Edition, Volume 2",
"authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.",
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"uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516",
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"isbn": "1482667185",
"uri": "\/textbooks\/website-text-spinning-with-php-2nd-edition-9781482667189",
"name": "Website Text Spinning With PHP",
"edition": "2nd Edition"
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"question_posted": "2024-06-29 01:20:30",
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