a) if product c is dropped operating income will: stay the same, increase or decrease?

b) what will be the change in operating income if product C is dropped? enter the answer as a Positive number

c) now assume that product c ia dropped and sales of product A will increase by 50% with no change in the relevant direct fixed expenses. operating income for the company will: stay the same, increase or decrease

d) if product c is dropped and sales of Product A increase by 50%, what is thw total increasw or decrease in operating income. ENTER AS POSITIVE NUMBER

Anderson Corp produces 3 products: Product A, Product B, and Product C. A segmented income statement for the past year is provided below: Product A Product B Product C Total Sales 24,000 52,000 24,000 100,000 Variable Expenses 14,000 29,000 10,000 53,000 Contribution Margin 10,000 23,000 14,000 47,000 Direct Fixed Expenses: Supervisor Salaries 5,000 7,000 7,000 19,000 Depreciation 4,000 9,000 8,000 21,000 Segment Margin 1,000 7,000 (1,000) 7,000 The contribution margin for Product C is $14,000. The relevant fixed costs include $7,000 in supervision salaries. Depreciation and supervisor salaries are dedicated to the product lines. If a product is dropped, the company is able to eliminate the supervisor salaries for that product. None of the equipment being depreciated can be sold