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Constantine Company has three product lines: A1, B2 and C3. The following information for a 12-month period is available: A1 B2 C3 $231,000 161,700 $69,300
Constantine Company has three product lines: A1, B2 and C3. The following information for a 12-month period is available: A1 B2 C3 $231,000 161,700 $69,300 $139,700 111,650 $28,050 $111,650 77,550 $34,100 Sales Variable costs Contribution margin Fixed Costs: Avoidable Unavoidable Operating Profit/Loss 22,000 28,325 $18,975 14,850 19,800 -$6,600 6,600 16,775 $10,725 Assuming product line B2 is discontinued due to the reported loss and the space formerly used to produce product B2 can be rented out for $15,000 per year, operating profit for the year will (a) increase by $1,800. decrease by $1,800. (c) increase by $2,200. (d) increase by $1,600. (b)
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