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Problem 6 (10 points): Armor Sports, Inc. has two product lines-baseball bats and tennis rackets. The year is as follows: Total Baseball Bats Tennis Racke

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Problem 6 (10 points): Armor Sports, Inc. has two product lines-baseball bats and tennis rackets. The year is as follows: Total Baseball Bats Tennis Racke $600,000 $350,00 $60,00 100.000 $(40,000) ales revenue $950,000 ariable costs ontribution margin ixed costs perating income (490,000) $460,00 $400,00 loss $330,000 What is the effect of dropping tennis rackets line on the operating income of the company? (Assume that $20,000 fixed costs is avoidable and that there would be no adverse effect on other sales.)

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