1. The income statement for Champion Parts is divided by its two product lines, Part L.2 and Part C6, as follows: i) If fixed costs remain unchanged and Champion Parts drops the Part C6 line, how will operating income change? A) Will decrease by $65,000 B) Will increase by $65,000 C) Will decrease by $10,000 D) Will increase by $10,000 ii) If Champion Parts can eliminate fixed costs of $40,000 by dropping the Part C6 line, then dropping it should result in which of the following? A) Increase in total operating income of $25,000 B) Increase in total operating income of $65,000 C) Decrease in total operating income of $65,000 D) Decrease in total operating income of $25,000 iii) Assume fixed costs per product line are avoidable. What is the impact if Champion drops the part C6 line? A) Increase total operating income $10,000 B) Decrease total operating income $10,000 C) Decrease total operating income $65,000 D) Increase total operating income $75,000 iv) Assume fixed costs per product line are avoidable. However, if Champion drops the C6 line, it will lose 5% of sales of L2. What is the impact if Champion drops the part C6 line? A) Increase total operating income $10,000 B) Decrease total operating income $34,000 C) Decrease total operating income $11,500 D) Decrease total operating income $1,500 v) Assume fixed costs are unavoidable and, if Champion drops the C6 line, it will lose 5% of sales of L2. What is the impact if Champion drops the part C6 line? A) Decrease total operating income $76,500 B) Decrease total operating income $34,000 C) Defresese total nnerating incrme $11 5no