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Sales Variable Costs Contribution Margin Avoidable Fixed Costs Unavoidavle Fixed Costs Operating Profit/Loss Meat Eater Vegan Paleo $100,000 $90,000 $44,000 $76,000 $62,000 $35,000 $24,000 $28,000

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Sales Variable Costs Contribution Margin Avoidable Fixed Costs Unavoidavle Fixed Costs Operating Profit/Loss Meat Eater Vegan Paleo $100,000 $90,000 $44,000 $76,000 $62,000 $35,000 $24,000 $28,000 $9,000 $9,000 $23,500 $3,000 $6,000 $3,500 $7,700 $9,000 $1,000 ($1,700) $20,000 of this avoidable fixed cost is a work term student that is launching their vegan based diet meals a) JRonald and Gary are considering dropping the Paleo department due to the operating loss it is creating. If this department is dropped, how will overall operating income be affected? b) If a department had to be cut, what department would you cut and why

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