Signature Corporation has three product lines: silver, gold, and platinum. All three products have a...
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Accounting
Signature Corporation has three product lines: silver, gold, and platinum. All three products have a positive contribution margin, but the gold line has an operating loss. Management is considering discontinuing the product. Management decides to discontinue the gold line. Which of the following must be true if the management followed the decision rule?
A. Total cost savings exceeded the lost revenues from discontinuing the line
B.Lost revenues exceeded the cost savings from discontinuing the line
C. Operating income will not change
D. Not enough information is present to make that determination
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