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Golden Ring Corporation has provided you with the following budgeted income statement for one of its products: Sales $ 800,000 (Variable Costs) (540,000) Contribution Margin
Golden Ring Corporation has provided you with the following budgeted income statement for one of its products: Sales $ 800,000 (Variable Costs) (540,000) Contribution Margin 260,000 (Fixed Costs) (280,000) Net Loss $ (20,000) Golden Ring Corporation believes that 70% of the fixed costs would be avoidable if the product line was dropped. Based on the impact on the company's operating income or loss, Golden Ring should keep the product line because it will save the company $____________ over dropping it
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