Darren Company has three product lines: D,E,and F The following information is
available:
Darren Company is thinking of dropping product line F because it is reporting an operating loss.
- All fixed costs are unavoidable.Darren Company drops product line F and rents the space formerly used to produce product F for $17,000 per year,what affect will this have on operating income?
A) Increase $1,000
B) Increase $18,000
C) Decrease $1,000
D) Decrease $18,000
Correct Answer:
Verified
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