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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 $18,000 E

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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 $18,000 E $9,500 $27,500 Variable cost (8,000) (9,800) (17,800) Fixed cost (allocated) (1,000) (2.100) = (3.100) Operating income (loss) $2,000 $(2,400) $6,600 Assume that fixed costs of $2,000 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? Select one: A. increases by $2,300 B.increases by $2,000 C. increases by $300 D. increases by $2,100 E. None of the above

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