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Darren's company is thinking of dropping product line F because it is reporting and operating loss. All fixed expenses are unavoidable. Assuming darren company drops

Darren's company is thinking of dropping product line F because it is reporting and operating loss. All fixed expenses are unavoidable. Assuming darren company drops product line F and does not replace it, what spect will this have on operating income? And Darren company is thinking of dropping product line F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Darren company drops product line F and does not replace it, what affect will this have on operating income

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4 D E F Sales $70,000 $40,000 $28,000 6 revenue Variable $40,000 $21,000 $12,000 7 expenses Contribu tion $30,000 $19,000 $16,000 margin Fixed $12,000 $15,000 $17,000 9 expenses Operatin g income $18.000 $4,000 -$1.000 10 (loss) 1 1

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