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Pollin' Corporation has two product lines, balance bikes and scooters. The company is not doing as well as management hoped as shown in the following

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Pollin' Corporation has two product lines, balance bikes and scooters. The company is not doing as well as management hoped as shown in the following incorne stutement Additional Inlormation Sales for balance bikes and scooters are 5120,000 and 5180,000 respectively. Variable expenses for bikes are 550,000 , the remaining variable expenses relate to scoolers Since scooters is a newer product line, the company has been adventising more aggressively. Thus, the traceable fixed costs for this prodiuct line are s5e, opo If the company were to drop the scooters product line, it is expected that sales of balance bikes will drop by 10% a. What is the inpact to operating income if the company were to drop the Scooter product the? Show your caiculation through the use of an income atatament for each prect b. Should the company drop the product line? Explain

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