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DM Corporation Has Provided You with the Following Budgeted Income

Question 110

Multiple Choice

DM Corporation has provided you with the following budgeted income statement for one of their products: DM Corporation has provided you with the following budgeted income statement for one of their products: DM has just encountered environmental problems with the product and will be forced to drop the product line altogether. They will be able to eliminate 75% of the fixed expenses. What will the impact on operating income be? A) Down $45,000 B) Down $15,000 C) Up $8,500 D) Up $7,500 DM has just encountered environmental problems with the product and will be forced to drop the product line altogether. They will be able to eliminate 75% of the fixed expenses. What will the impact on operating income be?


A) Down $45,000
B) Down $15,000
C) Up $8,500
D) Up $7,500

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