4.The management of IGREG Inc. provides you with the following information (in $) about its product A. The company manufactures and sells 3 different products. Each product is manufactured in a separate plant:

If the company discontinues product A, what is the impact on the company's total income? a)A decrease of $35,000 b)No answer is appropriate c)Increase of $35,000 d)Increase of $17,000 e)Decrease of $17,000

Product A Sales 220 000 Net income (17 000) Manufacturing cost (variable) 80 000 Insurance on inventories (common distributed) 30 000 Factory rent (specific fixed) 25 000 Advertising (common distributed) 7 000 Salary of the plant manager of product A (specific fixed) 60 000 Fixed indirect manufacturing costs (common allocated) 15 000 Shipping costs (variable) 20 000