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14and 15 pkease Student Name 14) A company has two different products that are sold in different markets. Financial data are as follows: Revenue Variable

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Student Name 14) A company has two different products that are sold in different markets. Financial data are as follows: Revenue Variable cost Fixed cost (allocated) Operating income (loss) Product A Product B Total $17,000 $9,500 $26,500 (8,000) 9,800)_(17,800 3.000 2.200 5.200 $6.000 $12.500 $3.500 Assume that fixed costs of $1,000 could be eliminated if Product B was dropped. Assume furthermore that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company? A) increases by $1,000 B) increases by $1,300 increases by $300 D) increases by $2,200 15) Kim Sunshades Company's western territory's forecasted income statement for the upcoming year is as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating loss $850,000 (530.000 $320,000 (500.000 S180,000) The company's management is considering dropping the western territory and has determined that 90% of the fixed costs are avoidable. What is the change in the forecasted operating loss for the upcoming y if the western territory is dropped? Assume the company predicts an operating loss across the entire company. A) The loss will be reduced by $130,000. B) The loss will be increased by $130,000. The loss will be reduced by $450,000. D) The loss will be increased by $450,000

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