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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 300$9,300

$ 25 comma 300$25,300

Variable cost

(8 comma 0008,000)

(9 comma 9009,900)

(17 comma 90017,900)

Fixed cost (allocated)

(1 comma 0001,000)

(2 comma 1002,100)

(3 comma 1003,100)

Operating income (loss)

$ 7 comma 000$7,000

$(2 comma 7002,700)

$ 4 comma 300$4,300

Assume that fixed 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. increases by $600

B. decreases by $600

C. increases by $2,100

D. decreases by $2,100

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