Ulmer Company has three product lines, X, Y, and Z. The following information is available: Sales...

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Ulmer Company has three product lines, X, Y, and Z. The following information is available: Sales Variable costs Contribution margin Fixed costs: Avoidable Fixed costs: Unavoidable $20,000 Y Z $30,000 1,200 16,000 $8,000 5,000 $ 8,000 $14,000 $ 3,000 3,000 2,000 6,000 3,000 $ 5,000 2,000 1,800 $( 800) Operating income $ 3,000 Assume that product line Z is discontinued and replaced with product line Y. This will double the production and sales of product line Y without increasing fixed costs. Operating income will A. decrease $1,000. B. increase $14,000. C. increase $13,000. D. increase $4,200. Ulmer Company has three product lines, X, Y, and Z. The following information is available: Sales Variable costs Contribution margin Fixed costs: Avoidable Fixed costs: Unavoidable $20,000 Y Z $30,000 1,200 16,000 $8,000 5,000 $ 8,000 $14,000 $ 3,000 3,000 2,000 6,000 3,000 $ 5,000 2,000 1,800 $( 800) Operating income $ 3,000 Assume that product line Z is discontinued and replaced with product line Y. This will double the production and sales of product line Y without increasing fixed costs. Operating income will A. decrease $1,000. B. increase $14,000. C. increase $13,000. D. increase $4,200.