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Play Now Inc. manufactures playground equipment. It currently makes two products: swing sets and slides. It is considering eliminating slides because the product line is
Play Now Inc. manufactures playground equipment. It currently makes two products: swing sets and slides. It is considering eliminating slides because the product line is unprofitable. The company's most recent contribution margin income statement is as follows: If Play Now Inc. eliminates slides $10,000 of fixed costs will not be eliminated. What will the change in Play Now Inc's net operating income be if slides is eliminated? Play Now's net operating income will increase $12,000. Play Now's net operating income will decrease $7,000. Play Now's net operating income will decrease $12,000. Play Now's net operating income will increase $7,000
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