please explain

CUIT,TEU D. $27,829 E. None of the above 7. The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and cost data on the toy for the past year follow: 30.000-8.000=22.000 segm. Margin Sales of 15,000 units $150,000 Variable expenses............. 120,000 Contribution margin .......... 30,000 Fixed expenses ............... 40,000 Net operating loss.............. ($ 10,000) If the toy were discontinued, then Draper could avoid $8,000 per year in fixed costs, and could generate a $16,000 increase in the contribution margin received from the other toys in its product line. At what selling price per Doombug should Draper be indifferent between dropping the Doombug or continuing its production and sale? (All other conditions remain the same, including annual sales of 15,000 units of the Doombug toy.) 16.000 8000 8.000 pofight ofropped A. $8.33 B. $9.25 C. $9.60 15.000 X 8200.000 28000 D. $10.70 E. None of the above 18.0000 10000 4000 0 0 1860000 B168000