Question: Central Industries has three product lines: A, B and C. The following information is available: Product A Product B Product C Sales $100,000

Central Industries has three product lines: A, B and C. The following information is available:
Product A Product B Product C
Sales $100,000 $90,000 $44,000
Variable costs 76,000 48,000 35,000
Contribution margin 24,000 42,000 9,000
Avoidable fixed costs 9,000 18,000 3,000
Unavoidable fixed costs 6,000 9,000 7,700
Operating income(loss) $9,000 $15,000 $(1,700)
Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C and does not replace it. What will happen to operating income? A. increase by $600 B. increase by $2,400 C. decrease by $9,000 D. decrease by $6,000

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