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Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2)
Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000.
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