Question 15 Following are sales and other operating data for the three products made and sold by Marine Enterprises: Marine Enterprises Product A B C Total Sales Manufacturing costs: Fixed $153,000 $89,700 $245,500 $488,200 $13,700 $34,200 $29,400 $77,300 Variable Selling and administrative expenses: 115,800 34,600 132,100 282,500 Fixed Variable 5,400 36,000 10,000 51,400 2,650 5,200 5,200 13,050 Total costs Net income (loss) $137,550 $110,000 $176,700 $424,250 $15,450 ($20,300) $68,800 $63,950 In view of the net loss shown for Product B, company management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product B were dropped; all fixed costs are indirect costs and would not be eliminated. Assume that the space used to produce Product B would be left idle. Would you recommend the elimination of Product B? Give supporting computations. Select an answer Product B Expected change in revenue -702000 X Expected change in VOH Expected change in Sell & Admin. Expected change in Operating Income -36000 X -398500 X