Question: As soon as possible please Riverside Industries has three product lines: A, B and C. The following information is available: Sales Variable costs Contribution margin
As soon as possible please


Riverside Industries has three product lines: A, B and C. The following information is available: Sales Variable costs Contribution margin Product A $100,000 76,000 24,000 Avoidable fixed 9,000 costs Unavoidable fixed 6,000 costs Operating $2,QQQ income(loss) Product B $90,000 68,000 42,000 18,000 9,000 Product C $44,000 35,000 9,000 3,000 7,700 Riverside Industries is thinking about dropping Product B because it is reporting a loss. Assume Riverside Industries drops Product B and does not replace it. What will happen to operating income? O A) decrease $4,000 increase $2,400 O C) decrease $9,000 O D) decrease $6,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
