15. Bennet Company has three product lines, Kitty, Loto and Alberto. The following information for a 12 month period is available: Kitty $235,000 164,500 $70,500 Loto $170,000 94,500 $75,500 Alberto $200,000 122,500 $77,500 Sales Variable costs Contribution margin Fixed Costs: Avoidable Unavoidable Operating profit 22,500 25,750 $22,250 40,500 54,000 ($19,000) 35,000 31,500 $11,000 Bennet are considering discontinuing product line Loto and replacing it with product line Alberto. This will double the production and sales of Alberto (sales will increase to $400,000) without increasing fixed costs. Total operating profit will a) Increase by $42,500. b) Decrease by $42,500. Increase by $7,500. c) d) Decrease by $7,500. Page 5 of 11