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6. A B C $70,000 $97,000 $23,000 Sales Variable costs 37,000 51,000 15,000 Contribution margin 33,000 46,000 8,000 Fixed costs Avoidable Unavoidable Operating income $16,000 $14,000 $(3,400) Istanbul company is thinking of dropping product C because it is reporting a loss. Assuming Istanbul drop product C and does not replace it, operating income will.... A. Will remain the same B. Decrease by $11,400 C. Increase by $2,000 D. Increase by $3,400 E. Decrease by $6,000 10,000 20,000 2,000 7,000 12,000 9,400

6. A B C $70,000 $97,000 $23,000 Sales Variable costs 37,000 51,000 15,000 Contribution margin 33,000 46,000 8,000 Fixed costs Avoidable Unavoidable Operating income $16,000 $14,000 $(3,400) Istanbul company is thinking of dropping product C because it is reporting a loss. Assuming Istanbul drop product C and does not replace it, operating income will.... A. Will remain the same B. Decrease by $11,400 C. Increase by $2,000 D. Increase by $3,400 E. Decrease by $6,000 10,000 20,000 2,000 7,000 12,000 9,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6. A B C $70,000 $97,000 $23,000 37,000 51,000 15,000 Contribution margin 33,000 46,000 8,000 Fixed costs Avoidable Unavoidable Operating income $16,000 $14,000 $(3,400) Istanbul company is thinking of dropping product C because it is reporting a loss. Assuming Istanbul drop product C and does not replace it, operating income will.... A. Will remain the same B. Decrease by $11,400 C. Increase by $2,000 D. Increase by $3,400 E. Decrease by $6,000 Sales Variable costs 10,000 20,000 2,000 7,000 12,000 9,400
Transcribed Image Text:6. A B C $70,000 $97,000 $23,000 37,000 51,000 15,000 Contribution margin 33,000 46,000 8,000 Fixed costs Avoidable Unavoidable Operating income $16,000 $14,000 $(3,400) Istanbul company is thinking of dropping product C because it is reporting a loss. Assuming Istanbul drop product C and does not replace it, operating income will.... A. Will remain the same B. Decrease by $11,400 C. Increase by $2,000 D. Increase by $3,400 E. Decrease by $6,000 Sales Variable costs 10,000 20,000 2,000 7,000 12,000 9,400
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