A company makes three products: A, B and C. Data in TL related to the products are as follows:

A B C

Sales revenue 90,000 70,000 50,000

VC 30,000 35,000 25,000

FC 42,000 40,000 22,000

If product B were discontinued, all variable costs and TL10,000 of the fixed costs associated with that product could be avoided. The other fixed costs are unavoidable. If product B is dropped, how will the company's operating profit be affected?

Ltfen birini sein:

a. None of the choices is correct.

b. TL5,000 increase.

c. TL10,000 increase.

d. TL15,000 decrease.

e. TL25,000 decrease.