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Whispering. Inc., a producer of shower products. is evaluating the protability of its men's, women's. and children's product lines. According to the information below. the
Whispering. Inc., a producer of shower products. is evaluating the protability of its men's, women's. and children's product lines. According to the information below. the men's category is unprotable. Men's Shower Products Sales $151,500 Variable costs 3?,000 Contribution margin 64,500 Fixed costs 79,500 Operating income {loss} $l15,000} Whispering has been having difculty tapping into the men's market for shower products but strategically would like to have a very broad product offering. If it drops the men's product line, though, it could free up $31,500 in fixed costs. Having a bit more exibility in its use of resources could be helpful in improving Whispering's other offerings. Would Whispering be financially better or worse off if it dropped the men's shower products? By how much? Whispering would be v by $
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