Problem #2

The following information pertains to Chrysnta Company's three products Unit sales per year Selling price per unit Variable costs per unit Unit contribution margin Contribution margin ratio 300 $10.00 3.50 $6.50 65% 450 $15.00 10.00 $5.00 33.33% 300 10.00 12.00 $(2.00) (20)% Assume that product C is discontinued and the space is rented, generating an additional $800 per month. All other information remains the same as the original data. Annual profits will: a. decrease by $9,000 b. increase by $10,200 C. decrease by $10,200 d. increase by $9,000