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Educational Publishing produces toys used as teaching aids in elementary schools. Income statements for the most recent period for each product line are presented below:

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Educational Publishing produces toys used as teaching aids in elementary schools. Income statements for the most recent period for each product line are presented below: Product A Product B Product C Sales $3,000 $900 $480 Variable manufacturing costs 2,100 - 700 - 300 Variable selling & admin - 100 - 30 - 40 Avoidable fixed costs - 550 - 171 - 100 Unavoidable fixed costs - 100 -44 - 25 Operating income $150 ($45) $15 Units produced in one hour 35 47 22 By how much would total operating income change if product B was dropped? $26 increase $45 increase $1 increase $126 Increase Educational Publishing produces toys used as teaching aids in elementary schools. Income statements for the most recent period for each product line are presented below: Product A Product B Product C Sales $3,000 $900 $480 Variable manufacturing costs 2,100 - 700 - 300 Variable selling & admin - 100 - 30 - 40 Avoidable fixed costs - 550 - 171 - 100 Unavoidable fixed costs - 100 -44 - 25 Operating income $150 ($45) $15 Units produced in one hour 35 47 22 By how much would total operating income change if product B was dropped? $26 increase $45 increase $1 increase $126 Increase

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