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The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: If Lovely Locks can eliminate fixed
The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: If Lovely Locks can eliminate fixed costs of $34,000 and increase the sale of Curling Irons by 6000 units at a selling price of $35 per unit and a contribution margin of $13 per unit, then discontinuing the Straighteners should result in which of the following? Decrease in total operating income of $132,000 Increase in total operating income of $132,000 Increase in total operating income of $62,000 Decrease in total operating income of $62,000
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