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Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $460,000 and have traceable fixed operating
Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $460,000 and have traceable fixed operating costs of $490,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $370,000 and Ortega's income will: O decrease by $90,000. increase by $30,000. O increase by $90,000. O increase by $340,000. O decrease by $340,000.
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