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Percy Productions Has Three Models: D, E, and F

Question 35

Multiple Choice

Percy Productions has three models: D, E, and F. The following information is available: Percy Productions has three models: D, E, and F. The following information is available:   Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Percy Productions discontinues model F and does not replace it, what effect will this have on operating income? A) Decrease $13,000 B) Increase $13,000 C) Increase $7000 D) Decrease $7000 Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Percy Productions discontinues model F and does not replace it, what effect will this have on operating income?


A) Decrease $13,000
B) Increase $13,000
C) Increase $7000
D) Decrease $7000

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