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Question 5 of 16 Financial data for ABC company is as follows 0.5 Points Product A Product B Product C Sales $70,000 $97,000 $23,000
Question 5 of 16 Financial data for ABC company is as follows 0.5 Points Product A Product B Product C Sales $70,000 $97,000 $23,000 Variable costs 37,000 51.000 15,000 Contribution margin 33,000 46,000 8,000 Fixed costs: Avoidable Unavoidable Operating income 10,000 20,000 10,000 7,000 12.000 9,400 $16,000 $14.000 $(11.400) What happens to the operating income of ABC company if it discontinues sales of Product C (due to its losses?) A. decrease by $6,000 B. increase by $11,400 C. increase by $2,000 D. decrease by $11,400 Reset Selection #3 L $ 54 4 D MacBook Pro 85 % ^ 6 H & 7 * 8
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