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2. Shine Bright Company has three product lines-D, E, and F. The following information is available: D Sales Variable costs Contribution margin Fixed expenses Operating
2. Shine Bright Company has three product lines-D, E, and F. The following information is available: D Sales Variable costs Contribution margin Fixed expenses Operating income (loss) $60,000 36.000 24.000 12.000 $12.000 $38.000 18.000 20.000 15.000 $5.000 $26,000 12.000 14,000 16,000 $(2.000) Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and can use the space formerly used to produce product F to generate $17,000 of net income per year, what effect will this have on operating income? Should they drop Product F? **Show your work to support your
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