Blossom Toys management is considering eliminating product A, which has been showing a loss for several years. The companys annual income statement, is as follows:

		A		B		C		Total
Sales		$2,289,000		$1,401,000		$1,807,500		$5,497,500
Variable expenses		1,696,000		600,400		1,094,200		3,390,600
Contribution margin		$593,000		$800,600		$713,300		$2,106,900
Advertising expense		$516,000		$425,000		$521,000		$1,462,000
Depreciation expense		17,300		10,200		20,900		48,400
Corporate expenses		91,000		82,000		105,200		278,200
Total fixed expenses		$624,300		$517,200		$647,100		$1,788,600
Operating income		$(31,300)		$283,400		$66,200		$318,300

(b) Your answer is partially correct. What would be the effect on income if product Awere dropped? Net income would decrease by $ $ 59700 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer (c) * Your answer is incorrect. Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $10, its variable costs were $5, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile? Units 106,660 e Textbook and Media Save for Later Attempts: 1 of 3 used Submit