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

question 136

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Jim Bean Company has three product lines: D,E,and F.The following information is available: 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 costs are unavoidable.Assuming Jim Bean Company discontinues line F and is able to double the production and sales of product line E without increasing fixed costs.What affect will this have on operating income? A) Decrease $13,000 B) Increase $13,000 C) Increase $30,000 D) Increase $34,000
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed costs are unavoidable.Assuming Jim Bean Company discontinues line F and is able to double the production and sales of product line E without increasing fixed costs.What affect will this have on operating income?

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