A company has two different products that are sold in different markets. Financial data are as follows: Product A Product B Total Revenue $18,000 $9,500 $27,500 Variable cost (8,000) (9,800) (17,800) Fixed cost (allocated) (1.000) (2.100) (3,100) Operating income (loss) $9,000 $(2,400) $6,600 Assume that fixed costs of $1,900 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? Select one: O A. increases by $2,300 0 B. increases by $2,200 C. increases by $2,400 D. increases by $2,100 E. None of the above. Which of the following statements describes a scenario when management should consider dropping a business division? Select one: A. The division's avoidable fixed costs are greater than its contribution margin. B. The division's unavoidable fixed costs are greater than its operating loss. C. The division has been consistently reporting an operating loss. O D. The division's avoidable fixed costs are less than its contribution margin. E. None of the above. DM Corporation has provided you with the following budgeted income statement for one of its products: Sales revenue $700,000 Variable costs (430,000) Contribution margin $270,000 Fixed costs (320.000) Operating loss $(50.000) DM has just encountered environmental problems with the product and will be forced to drop the product line altogether. DM will be able to eliminate 80% of the fixed costs. What will be the impact on operating income of the company? Select one: O A. Operating income will increase by $46,000. B. Operating income will increase by $224,000. C. Operating income will increase by $14,000. 0 D. Operating income will decrease by $46,000. O E. None of the above