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Jim Bean Company Has Three Product Lines: D,E,and F

Question 135

Multiple Choice

Jim Bean Company has three product lines: D,E,and F.The following information is available: Jim Bean Company has three product lines: D,E,and F.The following information is available:   Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed expenses are unavoidable.Assuming Jim Bean Company discontinues product line F and does not replace it,what affect will this have on operating income? A) Increase $9,000 B) Increase $17,000 C) Increase $8,000 D) Decrease $8,000
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed expenses are unavoidable.Assuming Jim Bean Company discontinues product line F and does not replace it,what affect will this have on operating income?


A) Increase $9,000
B) Increase $17,000
C) Increase $8,000
D) Decrease $8,000

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