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Rings Company has three product lines, A, B, and C. The following financial Information is available: Product Line A $ 54,000 $ 32,400 $ 21,600

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Rings Company has three product lines, A, B, and C. The following financial Information is available: Product Line A $ 54,000 $ 32,400 $ 21,600 Product Line B $ 105,000 $ 56,000 $ 49,000 Product Line C $ 24,000 $ 15,000 $ 9,000 Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Pre-tax operating income $ 5,500 $ 4,200 $ 11,900 $ 15,000 $ 10,500 $ 23,500 $ 6,600 $ 3,200 $ (800) If Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, pre-tax operating income for the company will likely: O Be unchanged-the two effects cancel each other out. Increase by $2,400. O Increase by $3,600. Increase by $6,300. Increase by some other amount

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