Jim Bean Company Has Three Product Lines: D,E,and F

question 135

Multiple Choice

Jim Bean Company has three product lines: D,E,and F.The following information is available:
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed expenses are unavoidable.Assuming Jim Bean Company discontinues product line F and does not replace it,what affect will this have on operating income?

• A)Increase $9,000
• B)Increase $17,000
• C)Increase $8,000
• D)Decrease $8,000

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