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Home Q & A Board Other Fields Homework Help Business Accounting
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KaptainZ KaptainZ
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5 years ago
Iver Roller Skates has three product linesD, E, and F. The following information is available:

DEF
Sales revenue$80,000$50,000$30,000
Variable costs(40,000)(15,000)(10,000)
Contribution margin$40,000$35,000$20,000
Fixed costs(10,000)(15,000)(25,000)
Operating income (loss)$30,000$20,000$(5,000)

The company is deciding whether to drop product line F because it has an operating loss. Assuming fixed costs are unavoidable, if Iver drops product line F and rents the space formerly used to produce product F for $17,000 per year, total income will be ________.
A) $10,000
B) $42,000
C) $20,000
D) $25,000
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
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brandanb6brandanb6
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5 years ago
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KaptainZ Author
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#2
5 years ago
Exactly what I needed for my quiz Smiling Face with Open Mouth
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