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Business, 18.12.2019 03:31 henryisasum7846

Pottery unlimited has two product lines: cups and pitchers. income statement data for the most recent year follow:

total cups pitchers
sales revenue $460,000 $310,000 $150,000
variable expenses 355,000 235,000 120,000
contribution margin 105,000 75,000 30,000
fixed expenses 76,000 38,000 38,000
operating income (loss) $29,000 $37,000 ($8,000)

if $23694 in fixed costs will be eliminated by dropping the cup line, how will operating income be affected? if income drops, use a negative sign in front of the number.

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