Question: Camera Corner is considering eliminating Model AE2 from its camera line because of losses over the past quarter. The past three months of information for
Camera Corner is considering eliminating Model AE2 from its camera line because of losses over the past quarter. The past three months of information for Model AE2 are summarized below: Overhead costs are 704 variable and the remaining 30% is depreciation of special equipment for model Af2 that has no resale value If Model AE2 is dropped from the product line, operating income will increase by 533,000 increase by $160,000 decrease by $19$,000 decrease by 5160,000 Camera Corner is considering eliminating Model AEz from its camera line because of losses over the past quarter. The past three months of information for Model AE2 are summariaed below Qverhead costs are 70% variable and the remaining 30% is depreciation of special equipment for model AE2 that has no resale value. If Model AE2 is dropped from the product line, operating income will increase by $33,000 increase by $160,000 decrease by $193,000 decresse by $160,000
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