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Suppose Wheatum is considering discontieving its mallow charms product line. Assume that during the past year, the mallow chams' product line income statement shownd the
Suppose Wheatum is considering discontieving its mallow charms product line. Assume that during the past year, the mallow chams' product line income statement shownd the following (Click the icon to view the income statement data) (C) (Click the icon for addibichal information.) If the company decides to discontinue the product line, What will happen to the company's operating income? should Wheatum discontirue the maliow charris produat line? Begin by preparing a contribution margin income statement for the mallow charms' product line. (Use a mi Data table More info Foxed manifacturing overtead costs acoount for to\% of the cost of goods. whila only 30% of the coperaung tixpenses are fixed Binoe the malow charms lne is jul one of the company's coreal operations, only 5700.000 of diect foud covea (the mapify of which io advortaingl wil be elminated it the product the is divoonbinued. The remainder of the frod costs will stal be incured by the compemy
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