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Riverside Industries has three product lines: A, B and C. The following information is available: Product B $90,000 68,000 42,000 Product C $44,000 35,000 9,000

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Riverside Industries has three product lines: A, B and C. The following information is available: Product B $90,000 68,000 42,000 Product C $44,000 35,000 9,000 Product A Sales $100,000 Variable costs 76,000 Contribution 24,000 margin Avoidable fixed 9,000 costs Unavoidable fixed 6,000 costs Operating $9,000 income(loss) 18,000 3,000 2.000 7,700 $(5,000) $(1,700) Riverside Industries is thinking about dropping Product B because it is reporting a loss. Assume Riverside Industries drops Product B and does not replace it. What will happen to operating income? A) decrease $9,000 B) increase $2,400 C) decrease $4,000 D) decrease $6,000

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