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Assume That Discontinuing Product J Would Result in a $30,000

Question 6

Multiple Choice

Assume that discontinuing Product J would result in a $30,000 increase in the contribution margin of other product lines.If Bingham chooses to discontinue Product J,then the change in net income next year due to this action will be a:


A) $145,000 decrease.
B) $5,000 increase.
C) $120,000 increase.
D) $145,000 increase.

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