Business, 07.05.2021 23:30 sweetgigi5950
Diamond Company has three product lines, A, B, and C. The following financial information is available: ItemProduct Line A Product Line B Product Line C Sales$66,000 $135,000 $30,000 Variable costs$39,600 $72,000 $18,750 Contribution margin$26,400 $63,000 $11,250 Fixed costs: Avoidable$6,100 $18,000 $8,400 Unavoidable$4,800 $13,500 $3,800 Pre-tax operating income$15,500 $31,500 $(950) If Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, pre-tax operating income for the company will likely:
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Diamond Company has three product lines, A, B, and C. The following financial information is availab...
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