Question
A company has two different products that are sold in differont markets. Financial data are as follows: Product A Product B Total Revenue Variable cost
A company has two different products that are sold in differont markets. Financial data are as follows: Product A Product B Total Revenue Variable cost Fixed cost (allocated) Operating income (loss) $18,000 $9,300 $27,300 (8,000) (9.800) (17.800) (1,000) (2.200) (3.200) $9,000 $2,700) $6,300 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? OA. decreases by $500 OB increases by $2.200 C. Increases by $500 OD. decreases by $2.2001
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