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Macaulay Roller Skates Company Has Three Product Lines-D,E,and F

question 47

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Macaulay Roller Skates Company has three product lines-D,E,and F.The following information is available: Macaulay Roller Skates Company has three product lines-D,E,and F.The following information is available:   - The company is thinking of dropping product line F because it is showing an operating loss.Assuming fixed costs are unavoidable,if Macaulay drops product line F and does not replace it,what effect will this have on operating income? A) Operating income will increase $5,000. B) Operating income will increase $20,000. C) Operating income will increase $25,000. D) Operating income will decrease $20,000.
- The company is thinking of dropping product line F because it is showing an operating loss.Assuming fixed costs are unavoidable,if Macaulay drops product line F and does not replace it,what effect will this have on operating income?

Understand the concepts of selective distortion and selective retention and their impacts on consumer perception.
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