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+Summer 20 Company has two divisions, Consumer and Industrial. The Consumer Division lost $30,000 and the Industrial Division had operating income of $80,000. Management has

+Summer 20 Company has two divisions, Consumer and Industrial. The Consumer Division lost $30,000 and the Industrial Division had operating income of $80,000.

Management has analyzed the situation and wants you to do a differential analysis to determine the increase or decrease in overall operating income based on the following:

Expected decrease in revenues $200,000
Expected decrease in total variable costs $140,000
Expected decrease in fixed costs $70,000

$130,000 decrease to operating income

$10,000 increase in operating income

$60,000 increase in operating income

$10,000 decrease in operating income

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