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.
-Assuming Accessibility Products Company drops line F and is able to double the production and sales of model E without increasing fixed costs. What affect will this have on operating income?
A) Increase $23,000
B) Decrease $23,000
C) Increase $7,000
D) Decrease $7,000
Correct Answer:
Verified
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