Salem, Inc. makes two products with the following data: Product A Product B Sales price per unit $25/unit 535/unit Variable cost per unit $17/unit $23/unit Machine hours per unit 2 MH 4 MH Total fixed costs are $40,000, and Salem's production capacity is 20,000 machine hours per year. If the firm can sell as many of either product as it can make, which product mix would deliver the highest operating income? A. 10,000 units of Product A and 10,000 units of Product B OB. No units of Product A and 5,000 units of Product B OC 10,000 units of Product A and no units of Product B D.5,000 units of Product A and 10,000 units of Product 8 Columbus, Inc. makes two products and has the following financial data: Total Product A Product B Sales revenue $1,050,000 $700.000 $350,000 Variable costs (430,000) (150.000) (280.000) Contribution margin $620,000 $550,000 $70,000 Fixed costs (180,000) (90.000) (90,000) Operating income (loss) $440.000 $460.000 5120.000) 1f $50,000 of fixed costs will be eliminated by Product B, how will dropping Product B affect the firm's operating income? OA Operating income will increase by $70,000 R. Operating income will decrease by $90,000 C Operating income will decrease by $20.000 D. Operating income will increase by $50,000