Use the information below to answer the following question(s) :
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 expenses are unavoidable. Assuming Darren Company drops product line F and does not replace it, what affect will this have on operating income?
A) Increase $16,000
B) Decrease $16,000
C) Increase $1,000
D) Decrease $1,000
Correct Answer:
Verified
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