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Diamond Company has three product lines. A, B, and C. The following financial information is available: Product Line A $48,000 $28,800 $19, 200 Product Line

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Diamond Company has three product lines. A, B, and C. The following financial information is available: Product Line A $48,000 $28,800 $19, 200 Product Line B $90,000 $48,000 $42,000 Product Line C $21,000 $13, 125 $ 7,875 Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Pre-tax operating income $ 5,200 $ 3,900 $10,100 $13,500 $ 9,000 $19,500 $ 5,70 $ 2,900 $ (-725) 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, pre-tax operating income for the firm will likely Be unchanged O Increase by $1,875 Increase by $2,175 O Decrease by $2,175 Decrease by $4,050

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