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Suppose Better Harvest is considering discontinuing its oatsie ohs product line. Assume that during the past year, the oatsie ohs' product line income statement showed

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Suppose Better Harvest is considering discontinuing its oatsie ohs product line. Assume that during the past year, the oatsie ohs' product line income statement showed the following: (Click the icon to view the income statement data.) (Click the icon for additional information.) If the company decides to discontinue the product line, what will happen to the company's operating income? Should Better Harvest discontinue the oatsie ohs product line? Begin by preparing a contribution margin income statement for the oatsie ohs' product line. (Use a minus sign or parentheses to enter a loss.) More info Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are foxed. Since the oatsie ohs line is just one of the company's cereal operations, only $720,000 of direct foxed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the foxed costs will still be incurred by the company. Data table

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