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

 

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A company has two different products that are sold in different markets. Financial data are as follows: Revenue Variable cost Fixed cost (allocated) Operating income (loss) Product A $17,000 (7,000) (1,000) $9,000 Product B $9,400 (9,900) (2,200) $(2,700) Total $26,400 (16,900) (3,200) $6,300 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 company has two different products that are sold in different markets. Financial data are as follows: Revenue Variable cost Fixed cost (allocated) Operating income (loss) Product A $17,000 (7,000) (1,000) $9,000 Product B $9,400 (9,900) (2,200) $(2,700) Total $26,400 (16,900) (3,200) $6,300 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?

Answer rating: 100% (QA)

To determine the impact on total operating income if Product B is dropped we need to ... View the full answer