25 point Question 3 Houston Co has three product lines, X, Y and Z The following financial information is available for this year Product X Product Y Product Z Sales revenue 90.000 80.000 50.000 50 000 40 000 Total variable costs 50 000 Contribution Margin Fixed costs Avosdable 15.000 12.000 9 000 10,000 000 Unavoidable 7 000 Operating Income Required: a) Total operating income of the company b) Assuming the company discontinues product line because it generates a loss without replacing it, operating income for the firm will: c) Product lint Z is discontinued and the manufacturing space formerly devoted to this line is used to expand the sales of product line X by 30%. Assuming that both the variable avoidable fixed costs were increased by 25%, operating income for the company will: d) Asuming that product line is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, operating income for the company will TTT T