A company has two different products that are sold in different markets. Financial data are as follows: Product A Product B Total Ravenue $16,000 $9,300 525,300 Variable cost (8,000) (9,800) (17.800) Fixed cost (allocated) (2.000) (2,100) (4.100) Operating income (los) $6,000 ${2,600) $3,400 Assume that food costs are all unavoidable and 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? A decreases by 5500 B. decreases by $2,100 Cincreases by $2,100 D. Increases by 5500 Inscribe, Inc, manufactures and sells pens for $each Cubby Corp. has offered inscribe, Inc. $3 per pen for a one-time order of 3,600 pons The total manutacturing cost per pen, using absorption conting, is $1 per unit and consists of variable costs of $0 80 per pen and fixed overhead costs of $0.20 per pon Assume that inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order? O A decrease of $14.000 OB decrease of 57,700 increase of $14.000 D. increase of $7,700 Maritime Sail Makers manufactures sails for Sailboats. The company has the capacity to produce 37.000 sals per year and is currently producing and selling 25,000 sails per year. The following information relates to current production $180 $50 $20 Salos price per unit Variable costs per unit: Manufacturing Selling and administrative Total fixed costs Manufacturing Selling and administrative $700.000 $300.000 Ma special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, fed costs remain unchanged, and there are no variable selling and administrative costs for this order, what is the change in operating income? O A. Operating income increases by S495,000 OB Operating income increases by $605,000 OC Operating income decreases by $495.000 OD. Operating income decreases by $605,000