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QUESTION 4 Quiz Company provided the following information related to its two product lines: Product 1 Product 2 Units sold 10,000 $20 20.000 $15 Price

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QUESTION 4 Quiz Company provided the following information related to its two product lines: Product 1 Product 2 Units sold 10,000 $20 20.000 $15 Price per unit Variable cost per unit Direct fixed costs 10 12 35,000 75,000 Common foxed costs total $45,000 Quiz Company allocated 1/3 of the common fixed costs to Product 1 and 2/3 of the common fixed costs to Product 2 Al direct fixed costs will be avoidable if a product line is dropped Assume that Product 1 and Product 2 are complements so that it Product 2 is dropped sales of Product 1 will decrease 10% Determine the amount that total operating income will increase (decrease) if Product 2 is dropped Note: Give your answer using dollar signs and commas but no decimal points (cents). Express negative numbers in parentheses. Example: $12.345 or $(12,345)

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