Denly Company has three products, A$,$ B$,$ and C$.$ The following information is available:

Assuming Product $C$ is discontinued and the space formerly used to produce Product $C$ is rented for $$12,000$ per year, operating income will:

a$.$ increase by $$6,600$

b$.$ increase by $$9,000$

c$.$ increase by $$12,000$

d$.$ increase by $$14,400$

$7.$ Disney's variable costs are $30\%$ of sales. The company is contemplating an advertising campaign that will cost $$22,000.$ If sales are expected to increase $$40,000,$ by how much will the company's net income increase?

a$.$ $$18,000$

b$.$ $$28,000$

c$.$ $$12,000$

d$.$ $$6,000$

$8.$ Sarks Company has a contribution margin of $$150,000$ and a contribution margin ratio of $30\%.$ How much are total variable costs?

a$.$ $$45,000$

b$.$ $$350,000$

c$.$ $$105,000$

d$.$ $$500,000$