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Round all answers to 2 decimals. Bradshaw Manufacturing Company is reviewing the profitability of the company's four products and the potential of several proposals for

Round all answers to 2 decimals.

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Bradshaw Manufacturing Company is reviewing the profitability of the company's four products and the potential of several proposals for improving the profitability of the product mix. An income statement and other data follow: Total Product W Product X Product Y Product Z Revenues $62,600 $10,000 $18,000 $12,600 $22,000 Cost of Goods Sold $44,274 $4,750 $7,056 $13,968 $18,500 Gross Margin $18,326 $5,250 $10,944 $-1,368 $3,500 Operating Costs $12,012 $1,990 $2,976 $2,826 $4,220 Operating Income $6,314 $3,260 $7,968 $-4,194 $-720 Units Sold 1,000 1,200 1,800 2,000 Selling Price $10.00 $15.00 $7.00 $11.00 Variable Cost of Goods Sold per Unit $2.50 $3.00 $6.50 $6.00 Variable Operating Costs per Unit $1.17 $1.25 $1.00 $1.20 Us the above information to consider each of the following questions. Each scenario is totally independent of the other two Question 19 1 pt 1) What is the effect on operating income if Y is dropped? (Only input the dollar amount of the OI change. Whether it is an increase or a decrease will be asked in the next question.) Question 20 1 pt Is the change in OI from the previous question an increase or a decrease? O Increase O Decrease O No Change Question 21 1 pt What is the total effect on operating income if Y is dropped and a resulting loss of customers causes a decrease of 200 units in the production and sales of X? (Only input the dollar amount of the OI change. Whether it is an increase or a decrease will be asked in the next question.) Question 22 1 pts Is the change in Ol from the previous question an increase or a decrease? Increase O Decrease O No Change Question 23 1 pts Assume that the part of the plant in which W is manufactured can easily be adapted to the production of Z, but changes in quantities produced would necessitate changes in selling prices. What is the total effect on operating income if production of W is reduced to 500 units (to be sold at $12.00 each) and production of Z is increased to 2,500 units (sold at $10.50 each)? (Only input the dollar amount of the Ol change. Whether it is an increase or a decrease will be asked in the next question.)

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