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Perey Productions has three models: D, E, and F. The following information is available: Sales revenue Variable experses Contibution marg Model D Model E $67,000
Perey Productions has three models: D, E, and F. The following information is available: Sales revenue Variable experses Contibution marg Model D Model E $67,000 $35,000 $32,000 14,000 535,000 $21,000 $20,000 $20000 520,000 Model F $24,000 $14.000 Fixed expenses Operating income (loss)$15.000 51000 $(10 000) Percy Productions is thinking of discontinuing model F because it is reporting an fved costs. What effect will this have on operating incoge? operabing loss. All fixed cost ts are unavoidable. Assuming Percy Productions discontinues line F and i s able to double the production and sales of model E without increasing O A. Decrease $17,000 O B. Increase $17,000 O C. Increase $11,000 O D. Decrease $11,000
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