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Mission Company has three product lines: D, E, and F. The following information is available: S 20,000 $12,000 S8,000 $17,000 $(9,000) Sales revenue $82,000 $45,000
Mission Company has three product lines: D, E, and F. The following information is available: S 20,000 $12,000 S8,000 $17,000 $(9,000) Sales revenue $82,000 $45,000 $37,000 $12,000 $25,000 $43,000 $23,000 S20,000 S15,000 $5,000 Variable expenses Fixed expenses Operating income (loss) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Mission Company is able to increase the sales revenue of product F to $32,000 with no change in volume of units sold and no change in variable costs or fixed costs. What affect will this have on operating income? O A. Decrease $20,000 O B. Increase $33,000 O C. Decrease $12,000 O D. Increase $12,000
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