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Richard Inc. manufactures three products, A, B, and C. Data regarding the company's sales and costs are as follows: Product Line A $32,000 $19,200 $12,800
Richard Inc. manufactures three products, A, B, and C. Data regarding the company's sales and costs are as follows: Product Line A $32,000 $19,200 $12,800 Product Line B $50,000 $27,000 $23,000 Product Line C $13,000 $ 8,125 $ 4,875 Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Pre-tax operating income $ 4,400 $ 3,100 $ 5,300 $ 9,500 $ 5,000 $ 8,500 $ 3,300 $ 2,100 $ (-525) Richard is considering dropping Product C due to the operating loss. Assume Richard does not replace Product C after dropping it, the company's total pre-tax operating income will likely: Multiple Choice Increase by $1,575
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