The Red Chocolate company plans to discontinue the mint chocolate line of its chocolate products....
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The Red Chocolate company plans to discontinue the mint chocolate line of its chocolate products. Last year, the mint chocolate line generated a contribution mfargin of $143,000 and incurred $240,000 in fixed costs. Discontinuing the mint chocolate line will allow the company to avoid two thirds of its fixed costs. What effect is expected to occur to the company's overall profit? a. a decrease of $160,000 b. an increase of $143,000 c. a decrease of $17,000 d. an increase of $17,000
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