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JF Cola is currently considering whether to discontinue production of its diet drink. The diet drink product had the following product loss last year: Sales
JF Cola is currently considering whether to discontinue production of its diet drink. The diet drink product had the following product loss last year: Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Loss $260,000 (160,000) 100,000 (120,000) $(20,000) 25% of the cost of goods sold represents fixed manufacturing overhead costs and 30% of the operating expenses are fixed. Only $60,000 of the fixed costs will be eliminated if the diet line is discontinued. What will happen to the company's operating income if the diet line is discontinued? O A. The company's operating income will increase. O B. The company's operating income will decrease By how much will the company's operating income change if the diet line is discontinued? (enter an absolute dollar amount) Income $
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