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ABC Company has three products that use common facilities. The relevant data concerning these three products follows: . Product Sales Variable costs Contribution Margin Fixed

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ABC Company has three products that use common facilities. The relevant data concerning these three products follows: . Product Sales Variable costs Contribution Margin Fixed cost Operating loss S10,000 5,000 5,000 5,000 20,000 10,000 15,000 0 s 5,000 $40,000 25,000 15,000 30,000 -$15,000 Total $80,000 50,000 30,000 50,000 -$20,000 Fixed costs are allocated common costs. If product line C is dropped, what will be the impact on operatin profits? a. Operating loss will decrease to (S15,000). 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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