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Author Question: Giant Company has three products, A, B, and C. The following information is available: Product ... (Read 105 times)

Medesa

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on: Mar 6, 2021
Giant Company has three products, A, B, and C. The following information is available:

Product AProduct BProduct C
Sales$70,000$97,000$23,000
Variable costs37,00051,00015,000
Contribution margin33,00046,0008,000
 Fixed costs:
Avoidable10,00020,0002,000
Unavoidable7,00012,0009,400
Operating income$16,000$14,000$ (3,400)

Giant Company is thinking of dropping Product C because it is reporting a loss. Assuming Giant drops Product C and does NOT replace it, operating income will ________.
◦ increase by $3,400
◦ increase by $2,000
◦ decrease by $6,000
◦ decrease by $11,400
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Medesa on Mar 6, 2021

vkodali

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Medesa

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Reply 2 on: Mar 6, 2021
Excellent

adammoses97

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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