Sahara Industries has three product lines: A, B and C. The following annual information is available:...
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Sahara Industries has three product lines: A, B and C. The following annual information is available: Product A $100.000 76,000 24,000 9,000 6.000 $9,000 Product B $90,000 48.000 42,000 18,000 9.000 $15,000 Product C S88,000 29.000 9,000 Sales Variable costs Contribution margin Avoidable fixed costa Unavoidable fixed costs Operating income(loss) 3,000 9.400 $(3,400) Sahara Industries is thinking about dropping Product C because it is reporting a loss. Assume Sahara Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year. What will happen to operating Income? O A. Increase by $6,600 B. increase by $14,400 O C. increase by $15,000 OD. increase by $9,000 O O C Sahara Industries has three product lines: A, B and C. The following annual information is available: Product A $100.000 76,000 24,000 9,000 6.000 $9,000 Product B $90,000 48.000 42,000 18,000 9.000 $15,000 Product C S88,000 29.000 9,000 Sales Variable costs Contribution margin Avoidable fixed costa Unavoidable fixed costs Operating income(loss) 3,000 9.400 $(3,400) Sahara Industries is thinking about dropping Product C because it is reporting a loss. Assume Sahara Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year. What will happen to operating Income? O A. Increase by $6,600 B. increase by $14,400 O C. increase by $15,000 OD. increase by $9,000 O O C
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Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
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