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i Kane Manufacturing has three product lines: A, B, and C. The following information is available for each product line: A Total C Sales $300

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i Kane Manufacturing has three product lines: A, B, and C. The following information is available for each product line: A Total C Sales $300 000 $805 000 315 000 $155 000 $350 000 Variable costs Contribution margin Fixed costs 100 000 110 000 105 000 200 000 240 000 50 000 490 000 32 000 S(2000) 40 000 55 000 147 000 $343 000 Net income $160 000 $185 000 Management is considering dropping product line C. NAI Required: What is one qualitative factor that Kane should consider before dropping product line C? A. Ifit is determined that all of product line C's fixed costs are avoidable, what would be the B. effect on the company's overall net income if it were dropped? Ifit is determined that none of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped? c. Ifit is determined that half of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped? D. NTE

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