Rings Company has three product lines, A, B, and C. The following financial information is available:...

 

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Rings Company has three product lines, A, B, and C. The following financial information is available: Item Sales Product Line A Product Line B Product Line C $ 42,000 $ 75,000 $ 18,000 Variable costs $ 25,200 $ 40,000 $ 11,250 Contribution margin $ 16,800 $ 35,000 $ 6,750 Fixed costs: Avoidable $ 4,900 $ 12,000 $ 4,800 Unavoidable $ 3,600 $ 7,500 $ 2,600 Pre-tax operating income $ 8,300 $ 15,500 $ (650) If Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, pre-tax operating income for the company will Rings Company has three product lines, A, B, and C. The following financial information is available: Item Sales Product Line A Product Line B Product Line C $ 42,000 $ 75,000 $ 18,000 Variable costs $ 25,200 $ 40,000 $ 11,250 Contribution margin $ 16,800 $ 35,000 $ 6,750 Fixed costs: Avoidable $ 4,900 $ 12,000 $ 4,800 Unavoidable $ 3,600 $ 7,500 $ 2,600 Pre-tax operating income $ 8,300 $ 15,500 $ (650) If Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, pre-tax operating income for the company will

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