Question: ver Roller Skates has three product lines D, E, and F. The following information is available Sales revenue Variable costs Contribution margirn Fixed costs Operating

 ver Roller Skates has three product lines D, E, and F.

ver Roller Skates has three product lines D, E, and F. The following information is available Sales revenue Variable costs Contribution margirn Fixed costs Operating income (loss) $80,000 $50,000 $30,000 (40,000) 15,000) (10,000) $40,000 $35,000 $20,000 (10,000) (15,000) (25,000) $30,000 $20,000 $(5,000) The company is deciding whether to drop product line F because it has an operating loss. Assuming fixed costs are unavoidable, if Iver drops product line F and rents the space formerly used to produce product F for $17,000 per year, total income will be Select one: o A. $20,000 O B. $25,000 o C. $10,000 D. $42,000

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