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A company has two different products that are sold in different markets. Financial data are as? follows: Product A Product B Total Revenue $ 16

A company has two different products that are sold in different markets. Financial data are as? follows:

Product A

Product B

Total

Revenue

$ 16 comma 000$16,000

$ 9 comma 400$9,400

$ 25 comma 400$25,400

Variable cost

?(7 comma 0007,000?)

?(9 comma 9009,900?)

?(16 comma 90016,900?)

Fixed cost? (allocated)

?(1 comma 0001,000?)

?(2 comma 2002,200?)

?(3 comma 2003,200?)

Operating income? (loss)

$ 8 comma 000$8,000

?$(2 comma 7002,700?)

$ 5 comma 300$5,300

Assume that fixed costs of

$ 1 comma 000$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?

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