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What will happen to the company overall operating income

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Reference no: EM132710168

Problem 1: A multi-product company produces and sells 7,000 units of a product every year. Each unit sells for $12 and has a contribution margin of $4.00. If the product is discontinued, $19,000 of the $32,000 in fixed costs charged to the product could be eliminated. If it is discontinued, what will happen to the company's overall operating income?

Reference no: EM132710168

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