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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 $17,000 $9,500

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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 $17,000 $9,500 $ 26,500 Variable cost (8,000) (9,800) (17, 800) Fixed cost (allocated) (3,000) (2 200) (5,200) Operating income (loss) $6,000 $(2500) $3,500 Assume that fixed costs of $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? O increases by $1,000 O increases by $1,300 O increases by $300 O increases by $2,200

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