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

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

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