D Question 17 27.27 pts Momentum Rollerblades has three product lines-D, E, and F. The...
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D Question 17 27.27 pts Momentum Rollerblades has three product lines-D, E, and F. The following information is available: Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) D E F $70,000 $40,000 $31,000 120.000 15000 (11.000) $50,000 $35,000 $20,000 (10.000) (15.000 (24.000) $40,000 $20,000 $14000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $22,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income? Operating income will decrease by $24,000. Operating income will increase by $2000. o Operating income will increase by $24,000. O Operating income will decrease by 52000
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