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Maizy Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $68,000 $36,000 $24.000
Maizy Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $68,000 $36,000 $24.000 Variable expenses $32,000 $13,000 $14,000 Contribution margin $36.000 $23.000 $10.000 Fixed expenses $16.000 $16,000 $16,000 Operating income (loss) $20.000 $7,000 $(6,000) Maizy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Maizy Productions discontinues model F and rents the space formerly used to produce product F for $15,000 per year, what effect will this have on operating income? . O A. Increase $26,000 O B. Decrease $26.000 O C. Increase $5,000 OD. Decrease $5,000
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