Diaz Enterprises makes 12 oz, 16 oz, and 20 oz coffee mugs. The company is considering dropping the 16 oz. size. Financial information on the 16 oz product line is shown below. Sales: $22,000 Variable expenses: $15,000 Fixed expenses: $8,000 Of the fixed expenses, $698 would be avoided if the company dropped the 16 oz size. If Diaz did drop the 16 oz line, by how much would income increase or decrease?

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To calculate the change in income if Diaz Enterprises drops the 16 oz size w... View the full answer