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Dunder Ltd. has two product lines, H and G. The following information is available: H G Sales $8816 $15438 Variable costs 4963 8117 Contribution margin

Dunder Ltd. has two product lines, H and G. The following information is available:

H

G

Sales

$8816

$15438

Variable costs

4963

8117

Contribution margin

3853

7321

Fixed costs:

Avoidable

2148

2800

Unavoidable

1913

2000

Operating Income

$-208

$2521

Dunder Ltd. is considering discontinuing product line H. This would increase sales of product line G by 42% without increasing fixed costs. If the company does decide to discontinue product line H, operating income will increase (decrease) by:

Select one:

a. $-778

b. $4779

c. $1370

d. $-2691

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