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Rings Company has three product lines, A, B, and C. The following financial information is...

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Accounting

Rings Company has three product lines, A, B, and C. The following financial information is available: Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Pre-tax operating income Product Line A $ 54,000 $ 32,400 $ 21,600 $ 5,500 $4,200 $ 11,900 Product Line B $ 105,000 $ 56,000 $ 49,000 $ 15,000 $ 10,500 $ 23,500 Rings is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pretax operating income for the firm will likely:
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Rings Company has three product lines, A, B, and C. The following financial information is available: Rings is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pretax operating income for the firm will likely: llowing financial eporting an operating es not replace it, pretax

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