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Total variable expenses 381000 190000 Contribution margin 191000 Fixed expenses Cost of goods sold 325000 244000 81000 65000 52000 Marketing and administrative expense 13000 Total

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Total variable expenses 381000 190000 Contribution margin 191000 Fixed expenses Cost of goods sold 325000 244000 81000 65000 52000 Marketing and administrative expense 13000 Total fixed expenses 390000 296000 94000 (9000) Operating income (loss) (106000) 97000 What have you learned from this comparison? The operating income difference calculated on the total analysis of discontinuing a product line the expected decrease in operating income il Security Force discontinues the industrial systems product line, as shown in Requirement 1. O This demonstrates that the incremental analysis approach in Requirement 1 yiolds results as the longer approach in Requirement that compares to operating income under the two alternatives. Choose from any list or enter any number in the input fields and then continue to the next

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