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Company X has three products, A, B, and C. The following information is availab...
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Company X has three products, A, B, and C. The following information is available:
|
Product A
|
Product B
|
Product C
|
Sales
|
$60000
|
$98000
|
$23000
|
Variable costs
|
38000
|
53000
|
12000
|
Contribution margin
|
22000
|
45000
|
11000
|
Fixed costs:
|
|
|
|
Avoidable
|
6000
|
19000
|
7310
|
Unavoidable
|
11000
|
12000
|
9400
|
Operating income
|
5000
|
14000
|
-5710
|
Assuming Company X drops Product C and does NOT replace it, operating income will:
0%
0%
0%
0%
0%