Question: Accelerate Rollerblades has three product linesD, E, and F. The following information is available: D E F Sales revenue $70,000 $40,000 $30,000 Variable costs (20,000)

Accelerate Rollerblades has three product linesD, E, and F. The following information is available: D E F Sales revenue $70,000 $40,000 $30,000 Variable costs (20,000) (10,000) (10,000) Contribution margin $50,000 $30,000 $20,000 Fixed costs (20,000) (10,000) (24,000) Operating income (loss) $30,000 $20,000 $(4,000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $15,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income? O A. Operating income will increase by $20,000. OB. Operating income will decrease by $15,000 OC. Operating income will decrease by $5,000. D. Operating income will increase by $35,000
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