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KU Question 38 2 pts Black Productions has three models: D, E, and F. The following information is available: Model D Model E Model F

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KU Question 38 2 pts Black Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $65,000 $33,000 $24,000 Variable expenses $32,000 $13,000 $14,000 Contribution margin $33,000 $20,000 $10,000 Fixed expenses $16,000 $16,000 $16,000 Operating income (loss) $17,000 $4, 000 $(6,000) Black Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assuming Black Productions discontinues line F and is able to double the production and sales of model E without increasing fixed costs. What effect will this have on operating income? ?) cn O Decrease $10,000 O Decrease $26,000 O Increase $10,000 O Increase $26,000

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