Question: AMD has two product lines: Memory cards and Flash drives. Income statement data for the most recent year follow: Total Memory cards Flash drives Sales
AMD has two product lines: Memory cards and Flash drives. Income statement data for the most recent year follow:
Total
Memory cards
Flash drives
Sales revenue
$
$
$
Variable expenses
Contribution margin
Fixed expenses
Operating income loss
$
$
$
Assuming the Flash drive line at AMD is dropped, total fixed costs remain unchanged, and the space formerly used to produce the Flash drive line is used to produce same level of production of Memory cards, how will operating income be affected Increasedecrease in operating income
Increase $
Increase $
Increase $
Decrease $
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