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Mairy Productions has three models D. E. and F. The following information is available Sales revenue Variable expenses Contribution margin Fixed expenses Operating income)
Mairy Productions has three models D. E. and F. The following information is available Sales revenue Variable expenses Contribution margin Fixed expenses Operating income) Model D $68,000 Model E $37.000 Model F $24,000 $37.000 $13,000 $14.000 $31,000 $24,000 $10,000 $16,000 $16,000 $15.000 $8,000 $16.000 $10,000 Maizy Productions is thinking of discontinuing model F because it is reporting an operating loss. Al feed costs are unavoidable. Assume Mairy Productions is able to increase the sales revenue of product F to $33,000 with no change in volume of units sold and no charge in variable costs or fixed costs. What effect will this have on operating income? CA Increase 124,000 OB. Increase $0.000 OC. Dease $24.000 OD. Decrease $9,000
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