Macaulay Company has three product lines?D,E, and F. The following information is?available:
Macaulay Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are?unavoidable, if Macaulay Company drops product line F and does not replace?it, what effect will this have on operating?income?
A. Operating income will increase $25,000
B. Operating income will decrease $20,000
C. Operating income will increase $20,000
D. Operating income will increase $5,000
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