Question 13 Moore Industries has the lines A and C. The following inomaine Sales reven $70,000 10,000 131,000 Variable costs 20.000) (5000) [11.000) Contribution margin 550,000 $35.000 520.000 Fixed cost (10,000) (5000) 23.000 Operating income (los) $40,000 $30,000 C1000) The company is deciding whether to drop product line because it has an operating lot. Aume. 11.00 Antwort statement concerning Product line 0 1 Sales are greater than avoidable costs by $5,000, so Product should not be eliminated Sales are less than avoidable costs by 5.000, so Product should be eliminated Sales are less than avoidable costs by 12,000, so Product should be eliminated Sales are greater than avoidable costs by 12,000, so Product should not be eliminated