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Karlson Roller Skates has three product lines-D, E, and F. The following information is available: E F Sales revenue $70.000 $60,000 $31,000 Variable costs (40,000) (15,000) (12,000) Contribution margin $30.000 $45.000 $19.000 Fixed costs (15,000) (10,000) (23,000) Operating income (loss) $15.000 $35.000 $(4,000) The company is deciding whether to drop product line F because it has an operating loss. Assuming fixed costs are unavoidable, if Karlson drops product line F and rents the space formerly used to produce product F for $20,000 per year, total operating income will be O A. $19,000 O B. $12,000 O C. $23,000 O D. $47,000 A company sells two products with information as follows: A Sales price per unit $12 $22 Variable cost per unit $10 $12 The products are machine made. Four units of product company has a maximum of 5,000 machine hours available per month. The company can sell up to 18,000 units of product A per month, and up to 3,000 units of product B for the month. What is the optimum product mix to maximize the company's operating income? can be made with one machine hour and two units of product B can be made with one machine hour. The O A. 1,500 units of A and 58,000 units of B O B. 28,000 units of A and zero units of B O C. zero units of A and 3,000 units of B O D. 14,000 units of A and 3,000 units of B