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The Patty Company manufactures and sells two lines of fly fishing rods. During the most recent accounting period, the Pro line and the Novice line

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The Patty Company manufactures and sells two lines of fly fishing rods. During the most recent accounting period, the Pro line and the Novice line sold 16,000 and 3,000 units, respectively. The company's most recent financial statements are shown below: Pro $960,000 Novice $360,000 640,000 140,000 $180,000 Sales Less cost of goods sold: Unit-level production cost Depreciation, production equipment Gross margin Less operating expenses: variable selling and administrative costs Allocated Corporate-level facility expenses (fixed) Net income (loss) 202,500 75,000 $ 82,500 42,500 38,400 $ 99, 100 97,500 38,400 $ (53,400) Based on this information, the company should: Multiple Choice Eliminate the Novice line because it is operating at a loss. Keep the Novice line because it contributes $82,500 to total profitability. It is impossible to determine with the given information. Keep the Novice line because it contributes $60,000 to total profitability

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