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Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $560, 000 and have traceable fixed operating
Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $560, 000 and have traceable fixed operating costs of $570, 000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $500, 000 and Ortega's income wi increase by $490, 000. increase by $60, 000. decrease by $60, 000. decrease by $490, 000. increase by $10, 000
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