question 15

Question 15 (3 points) A company has two different products that are sold in different markets. Financial data are as follows: Revenue Variable cost Fixed cost (allocated) Operating income (loss) Product A $17,000 (8,000) (1,000) $8,000 Product B $9,300 (9,800) (2.100) $12.600) Total $26,300 (17,800) (3.100) $5,400 Assume that fixed costs of $2,000 could be eliminated if Product B was dropped, Assume furthermore that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company? increases by $500 increases by $2,500 increases by $2,000 increases by $2,100