10. Stone Industries has three product lines: X, Y and Z. The following information is available: Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product X $100,000 76,000 24,000 9,000 6,000 $9,000 Product X $70,000 48.000 22,000 18,000 6,000 $(2.000) Product z $44,000 30,000 14,000 3,000 7,700 $3.300 Stone Industries is thinking about dropping Product Y because it is reporting a loss. Assume Stone Industries drops Product Y and does not replace it. What will happen to operating income? A) increase by $2,000 B) increase by $22,000 C) decrease by $4,000 D) decrease by $18,000 Bropski Corporation manufactures two products, Simple and Complex. The following information was gathered: Simple Complex Selling price per unit $37.00 $26.00 Variable cost per unit 32.00 22.00 Total fixed costs are $18,000. Assume demand for either product exceeds the factory's capacity. It takes one hour of production time to make Simple and two hours to make Complex. The annual capacity of the plant is 10,000 hours. How many units of Simple and Complex should Bronski Corporation produce and sell to maximize profits? A) O units of Simple and 5,000 units of Complex B) 6,000 units of Simple and 3.000 units of Complex C) 10.000 units of Simple and units of Complex D) 3,000 units of Simple and 6,000 units of Complex