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Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The

Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The effect on net income of no longer manufacturing widgets is a:

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$150,000 increase.

$0

$50,000 increase.

$50,000 decrease.

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