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Khaless Corporation produces and sells frozen breakfast foods such as frozen pancakes, frozen waffles, and frozen egg sandwiches. Each frozen waffle package sells for $5
Khaless Corporation produces and sells frozen breakfast foods such as frozen pancakes, frozen waffles, and frozen egg sandwiches. Each frozen waffle package sells for $5 and has a variable expense per unit of $1.50. Annually, Khaless Corporation sells around 100,000 frozen waffles per year. If the frozen waffles are discontinued, 80% of the $490,000 in annual fixed costs charged to the frozen waffle line would be eliminated. How will net income change if the frozen waffle line is dropped
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