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Hi I keep getting my calculations wrong on this question and was wondering if someone can get walk me through it. So I understand what
Hi I keep getting my calculations wrong on this question and was wondering if someone can get walk me through it. So I understand what I am doing wrong?
The income statement for Wake Me Up Appliances is divided by its two product lines, Toasters and Caffee Machine, as follows: If Wake Me Up Appliances can eliminate fixed costs of $35,000 and increase the sale of Toasters by 6,500 units at a selling price of $30 per unit and a contribution margin of $12 per unit, then discontinuing the Wake Me Up should result in which of the following? A. Decrease in total operating income of $68,000 B. Increase in total operating income of $153,000 c. Increase in total operating income of $68,000 D. Decrease in total operating income of $153,000
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