Question: Black Bear Merchandising Inc. has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below: The

Black Bear Merchandising Inc. has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below:

The allocated fixed costs are unavoidable. Demand for individual products is not affected by changes in other product lines.
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What will happen to profits if Black Bear discontinues the Books product line?

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