Business, 22.04.2021 01:00 briarkaltvedt

A company has two different products that are sold in different markets. Financial data are as follows: Product A

Product B

Total
Revenue

$16,000

$9,300

$25,300
Variable cost

(8,000)

(9,800)

(17,800)
Fixed cost (allocated)

(2,000)

(2,100)

(4,100)
Operating income (loss)

$6,000

$(2,600)

$3,400
Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company?
A.
decreases by $2,100
B.
increases by $500
C.
increases by $2,100
D.
decreases by $500

Answers: 3

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A company has two different products that are sold in different markets. Financial data are as foll...

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