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Question 27 10 F Below is information regarding each of Company X's two products, printers and fax machines: Fax Machines Printers Sales revenue $370,000 $530,000

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Question 27 10 F Below is information regarding each of Company X's two products, printers and fax machines: Fax Machines Printers Sales revenue $370,000 $530,000 Variable expenses $235,000 $320,000 Contribution margin $135,000 $210,000 Fixed expenses $39,500 $300,000 Operating income (loss) $95,500 $(90,000) The company is considering eliminating the printers. If the company eliminates the printers, only 20% of the associated fixed costs can be avoided. However, the freed capacity could be used to double the production of fax machines. There is unlimited demand for the fax machines. If the company eliminates printers, how will operating income be affected? Enter your answer as a positive if income would increase and negative if would decrease

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