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The Keith Company is considering the addition of a new line of product to its current product lines. The expected cost and revenue data for
The Keith Company is considering the addition of a new line of product to its current product lines. The expected cost and revenue data for the new product are as follows: If the new product is added to the existing product line, the contribution margin of the other existing product lines is expected to drop $65, 000 per year. Required If the new product line is added next year, what would be the increase or decrease in net income resulting from this decision? Be sure to tell me if it is an increase or decrease
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