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ABC Company has three products that use common facilities. The relevant data concerning these three products follows: Total A B $10,000 $30,000 Sales $ 40,000

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ABC Company has three products that use common facilities. The relevant data concerning these three products follows: Total A B $10,000 $30,000 Sales $ 40,000 $ 80,000 25,000 50,000 Variable costs 5,000 20,000 Contribution margin $ 5,000 $10,000 $15,000 $30,000 Fixed costs 5,000 15,000 30,000 50,000 O $(5,000) $(15,000) $(40,000) Operating loss $ Fixed costs are allocated common costs. If product line C is dropped, what will the impact on operating profits? A. Operating loss will decrease to ($35,000) B. Operating loss will decrease to ($5,000) C. Operating loss will increase to ($35,000) D. There would be no change in operating profits

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