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Diamond Company has three product lines, A, B, and C. The following financial information is available: Product Line A $58,000 $34,800 $23,209 Product Line B
Diamond Company has three product lines, A, B, and C. The following financial information is available: Product Line A $58,000 $34,800 $23,209 Product Line B $115,000 $ 61,000 $ 54,000 Product Line C $26,000 $16,250 $ 9,750 Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Pre-tax operating income $ 5,709 $4,400 $13,100 $ 16,000 $ 11,500 $ 26,500 $ 7,200 $ 3,400 $ (-850) Diamond is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it.pl Multiple Choice Be unchanged Increase by $2.250 Increase by $2.550 ooo Decrease by $2.550
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