Fruit Basket Company manufactures fruit baskets. The basket component, not including the fruit, is made in-house. Details of the baskets are as follows: A foreign factory has offered to supply Fruit Basket Company with ready-made baskets for a price of $12 per basket. Assume that Fruit Basket Company's fixed costs are unavoidable, but that Fruit Basket Company could use the vacated production facilities to earn an additional $8500 of profit per month. If Fruit Basket Company decides to outsource, monthly operating income will increase by $15,000 $26,500 $4900 $8500 The income statement for Orange Company is divided by its two product lines, juice and fruit, as follows: Orange Company is considering eliminating the fruit product line. If this line is eliminated, Orange Company will be able to eliminate $74,000 of total fixed costs. By how much would this business decision increase operating income? $60,000 $134,000 $74,000 $14,000 Fruit Pie Inc. has three product lines-Strawberry, Cherry, and Apple. The following information is available: The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Fruit Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $18,000 per year, total operating income will be $24,000 $20.000 $10,000 $44,000