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shown below any sets three product lines Ujayi: Drishti and Tapas. A traditional departmental income Vijay Drishti Tapas Sales Revenue $80,000 $30,000 $37.500 (Cost of

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shown below any sets three product lines Ujayi: Drishti and Tapas. A traditional departmental income Vijay Drishti Tapas Sales Revenue $80,000 $30,000 $37.500 (Cost of Goods Sold) 165.000) 9.000 Gross Profit 15,000 21.000 17.250 (Operating Expenses) (20.000) (15.000) (7.375) Operating income S(5,000) $6,000 $9,875 30% of the cast of goods sold for each product line is variable. The remaining cost of goods sold for each product line consists of traceable fuadcants. The operating Expenses for each product line include $6,000 of common fixed costs. The remaining operating expenses consist of traceable fixed costs Due to profitability concerns, management is considering dropping the Vijayi product line. It Ujayi is dropped, the freed up capacity would be used to expand Tapus's perations. As a result, Tapas's sales volume would increase by 10%, and its traceable fixed costs would increase by $2.000 dae to the cost of expansion. The loss Ujay and the expansion of Tapas would result in a 5% decrease in Drisht's sales volume What would be the annual change in operating income d Ujayi is ropped? DA decrease of $5,442 50 B increase of $3.967.50 C decrease of $1,380.00 Dincrease of $4.620.00

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