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Question 14 2 pts Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net
Question 14 2 pts Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net operating income. Data for each per unit is as follows: Phones Laptops Revenue $530 $1099 Variable Costs $245 $430 Traceable Fixed $300 $209 Costs Allocated Fixed $110 $130 Costs Total Per Unit $(125) $330 Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of traceable fixed costs can be avoided. If Appel Inc. sells 1,069 units of phones and 522 units of laptops, how much will their net operating income increase/decrease if the phone segment is dropped? Round your answer to the nearest dollar.
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