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DROPPING A PRODUCT LINE Game - Byte is a retailer who sells two types of gaming systems, Alpha and Beta. With rare exceptions, Game -

DROPPING A PRODUCT LINE
Game-Byte is a retailer who sells two types of gaming systems, Alpha and Beta. With rare
exceptions, Game-Byte sells a gaming headset with each system. Customers can use the headset
with either type of gaming system. The revenues and costs associated with these three products
are:
The store manager is considering dropping the Alpha gaming system product line. If the store
manager drops the product, sales dollars of the Beta System will increase by 30%, but sales
dollars of the headsets will drop by 20%. Will Sound-Byte's NOI increase or decrease if the
store manager drops the Beta system? By how much?
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