Shine Bright Company has three product lines: D, E, and F. The following information is available: Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assume that $15,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

Question

Shine Bright Company has three product lines: D, E, and F. The following information is available:  Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assume that $15,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

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The Answer of Shine Bright Company has three product lines: D, E, and F. The following information is available:  Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assume that $15,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

Shine Bright Company Has Three Product Lines: D, E, and F