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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 $15,000 $9,500

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

Product A

Product B

Total

Revenue

$15,000

$9,500

$24,500

Variable cost

(9,000)

(9,800)

(18,800)

Fixed cost (allocated)

(3,000)

(2,000)

(5,000)

Operating income

$3,000

($2,300)

$700

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?

increase $2,000

increase $300

decrease $2,000

decrease $300

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