Use the information below to answer the following question(s) :
Accessibility Products Company has three models: D, E, and F. The following information is available:
Accessibility Products Company is thinking of dropping model F because it is reporting an operating loss. All fixed expenses are unavoidable.
-If Accessibility Products Company drops model F and rents the space formerly used to produce product F for $12,000 per year, what effect will this have on operating income, as compared to the total operating income (loss) if they keep Model F?
A) Increase $3,000
B) Increase $13,000
C) Decrease $13,000
D) Decrease $3,000
Correct Answer:
Verified
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