Johnson Corp produces 3 products: Product A, Product B, and Product C. A segmented income statement for the past year is provided below: Product A Product B Product C Total Sales 32,000 50,000 24,000 106,000 Variable Expenses 14,000 17,000 20,000 51,000 Contribution Margin 18,000 33,000 4,000 55,000 Direct Fixed Expenses: Supervisor Salaries 2,000 7,000 6,000 15,000 Depreciation 4,000 9,000 7,000 20,000 Segment Margin 12,000 17,000 (9,000) 20,000 The contribution margin for Product C is $4,000. The relevant fixed costs include $6,000 in supervision salaries. Depreciation and supervisor salaries are dedicated to the product lines. If a product is dropped, the company is able to eliminate the supervisor salaries for that product. None of the equipment being depreciated can be sold. Question 30 (1 point) If product C is dropped operating income will: O Increase Stay the same Decrease Question 31 (3 points) What will be the change in operating income if Product C is dropped? Enter your answer as a positive number. Question 32 (1 point) Based on the change in operating income alone, should product C be dropped? (yes or no) -4 17 Yes No masdan 224 Question 33 (1 point) Now assume that product C is dropped and sales of Product A will increase by 50% with no change in the relevant direct fixed expenses. Operating income for the company will: Increase Stay the same Decrease Question 34 (3 points) Assume that Product C is dropped and sales of Product A increase by 50%. What is the total increase or decrease in operating income. Enter your answer as a positive number. A/ Page 5 of 9 Next Page