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STION 40 Columbus, Inc. makes two products and has the following financial data: Total Product A Product B Sales revenue $950,000 $600,000 $350,000 Variable costs

STION 40 Columbus, Inc. makes two products and has the following financial data: Total Product A Product B Sales revenue $950,000 $600,000 $350,000 Variable costs (490,000) (200,000) (290,000) Contribution margin $460,000 $400,000 $60,000 Fixed costs (170,000) (70,000) (100,000) Operating income (loss) $290,000 $330.000 $(40,000) If no fixed costs are eliminated, what is the effect of dropping Product B on the firm's operating income? OA Operating income will decrease by $60.000 OB. Operating income will increase by $70.000 OC Operating income will increase by $40,000 OD. Operating income will decrease by $350,000 QUESTION 41 Salem, Inc. makes two products with the following data: Sales price per unit Product A $70/unit Product B $170/unit Variable cost per unit $50/unit $70/unit Salem can make six units of Product A per machine hour, and it can make four units of Product B per machine hour. The firm's production capacity is 1,600 machine hours per month, and it can sell as many units of either product as it can make. How many units of each product should Salem produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.) OA 9,600 units of Product A and no units of Product B B 6,400 units of Product A and 4,800 units of Product B OC No units of Product A and 6,400 units of Product B 04,800 units of Product A and 3.200 units of Product Bimage text in transcribedimage text in transcribed

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