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Question #9 oduct lines. Management is considering dropping product line X because it is showing a loss. The fixed costs are being BHM Corporation has

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Question #9 oduct lines. Management is considering dropping product line X because it is showing a loss. The fixed costs are being BHM Corporation has two pr allocated rather than being tracable to the individual product lines. If product line X is dropped, 25% of the total fixed costs could be eliminated. Product X Product yTotal 105,000 150,000 255,000 Sales Variable Cost 65,000 60,000125,000 Contribution Margi 40.000 90.000 130.000 ixed Cost 41,000 60,000 101,000 Operating Income -1,000 30,000 29,000 1 - If product line X is dropped, what would be the expected total contribution margin for the company? s 2- How much would the company's contribution margin decrease? S 3-iIf product line X is dropped, what would be the expected fixed costs for the company? $ 4- How much would the company's fixed costs decrease? 5- If product line X is dropped what would be the expected operating income for the company? $ s-what is the expected decrease in income if product line X is dropped?s

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