Duvel Ltd. currently manufactures three products: X, Y, and Z. Results from the previous fiscal year for these products are presented below:

	Product X	Product Y	Product Z
Sales - units	7339	5148	9614
Sales price per unit	$75	$40	$64
Variable cost per unit	$57	$30	$30
Fixed costs	$95796	$54576	$151017

Duvel is considering eliminating Product Y in order to focus their efforts on its other two products.

The discontinuation of Product Y is expected to cause the following changes:

	A 17% increase in the production and sales of Product X
	A 9% decrease in the production and sales of Product Z
	60% of the fixed costs of Product Y will be eliminated

What is the incremental (change in) income of the company if Product Y is discontinued?

Select one:

a. $-58442

b. $-25696

c. $-28390

d. $25784

A company is considering eliminating one of its products. The summarized income statement for the product (Product 101) is as follows:

Sales	$2002437
Variable costs	1535248
Contribution margin	$467189
Fixed costs	928015
Operating loss	-$460826

If the product 101 is dropped, the sales of product 108 will increase by 18%. Product 108s sales are $3129566 and its contribution margin ratio is 32%. Of the $928015 of Product 101s fixed costs, only $168873 of costs are avoidable. What is the incremental benefit (cost) to the company if Product 101 is dropped?

Select one:

a. $-467189

b. $641089

c. $-286926

d. $-118053