Jerrod Company expects the following results for its three products, without considering any of the changes described below Product B $300 100 200 Total $400 140 260 Sales Variable Costs Contribution Margin Fixed Costs- Avoidable Fixed Costs-Unavoidable Total Fixed Costs Profit Product A $100 40 60 20 50 70 (10) 30 50 100 130 70 150 200 60 The unavoidable fixed costs are allocated based on sales of 100 of Product A and 200 of Product B. The weighted average contribution margin is approximately: A. 65 % B. 35 % C. 15% D. None of these E. 50% Product A can be dropped and replaced with a new product, C, which would have avoidable fixed costs of $50. Product C would sell for $6 and have variable cost of $2 each and would have an expected volume of 40 units. What would Jerrod's Income be if Product A were replaced by Product C? A. $120 B. $150 C. $130 D. None of these E. $100 Oo oo What is Jerrod's income if Product A is dropped? A. $ 20 B. $120 C. $100 D. None of these E. $140