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E) none of the above. B) $450,000 $420,000 D) $480,000 19) Sahara Ind available ustries has three product lines: A, B and C. The following annual information is Product c $88,000 Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 6,000 24,000 9,000 6,000 $90,000 48,000 42,000 18,000 9.000 9,000 3,000 9,400 Sahara Industries is thinking about dropping Product C because it is reporting a loss. Assume Sahara Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year. What will happen to operating income? A) increase by $9,000 C) increase by $15,000 E) none of the above. B) increase by $6,600 D) increase by $14,400 20) When deciding whether to add or delete a department, managers should keep the department as long as from the department exceeds A) contribution margin; common costs B) contribution margin; avoidable fixed costs C) contribution margin; unavoidable fixed costs D) contribution margin; variable costs