Macaulay Company Has Three Product Lines-D,E,and F Macaulay Company Is Thinking of Dropping Product Line F Because
Macaulay Company has three product lines-D,E,and F.The following information is available:
Macaulay Company is thinking of dropping product line F because it is reporting an operating loss.Assume that $23,000 of total fixed costs could be eliminated by dropping F.What effect would this decision have on operating profit?
A) Operating profit will decrease by $2000.
B) Operating profit will decrease by $25,000.
C) Operating profit will increase by $2000.
D) Operating profit will increase by $25,000.
Correct Answer:
Verified
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