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Percy Productions has three models: D, E, and F. The following information is available: Model Model E Model F Sales revenue $66,000 $38,000 $24,000 Variable

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Percy Productions has three models: D, E, and F. The following information is available: Model Model E Model F Sales revenue $66,000 $38,000 $24,000 Variable expenses $33,000 $14,000 $14,000 Contribution margin $33,000 $24,000 $10,000 Fored expenses $19,000 $19,000 $19,000 Operating income (loss) $14,000 $5,000 $(9,000) Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assuming Percy Productions discontinues line F and is able to double the production and sales of model E without increasing foced costs. What effect will this have on operating income? O A. Decrease $14,000 OB. Increase $14,000 OC. Increase $24,000 OD. Decrease 524.000

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