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ABC Company Produces and sells three Products - A, B, C. Product A Product B Product Total Sales $100,000 $200,000 $300,000 $600,000 Less Cost of

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ABC Company Produces and sells three Products - A, B, C. Product A Product B Product Total Sales $100,000 $200,000 $300,000 $600,000 Less Cost of goods sold 80,000 150,000 200.000 430,000 Gross margin 20,000 50,000 100,000 170,000 Less Operating 30,000 70,000 70,000 170,000 expenses Net operating income $(10,000) $(20.000) $30,000 $0 For each segment, 40% of its cost of goods sold and operating expenses are variable expenses and the remaining balances are fixed expenses. Total fixed expenses (operating and manufacturing) were allocated to each segment as follows: Fixed Expenses Allocated to Each Segment Product A $0 Product B $50,000 Product $70,000 tao How much is the total cost that the company can save, if Product A was dropped? Select one: O a. $110,000 O b. $100,000 O c. $90,000 For each segment, 40% of its cost of goods sold and operating expenses are variable expe the remaining balances are fixed expenses. Total fixed expenses (operating and manufact were allocated to each segment as follows: Fixed Expenses Allocated to Each Segment Product A $20,000 Product B $50,000 Product C $70,000 tao What would be the effect on the company's overall profit, if Product B was dropped? Select one: O a. Overall company's profit will decrease by $30,000 O b. The overall company's profit will increase by $20,000 O c. Overall company's profit will increase by $90,000. O d. Overall company's profit will increase by $50,000

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