Question: The following information pertains to Salamandre Company's three products: Assume that product C is discontinued and the extra space is rented for $300 per month.

The following information pertains to Salamandre Company's three products:

A 250 Unit sales per year 400 250 Selling price per unit Variable costs per unit Unit contribution margin Contribution m

Assume that product C is discontinued and the extra space is rented for $300 per month. All other in- formation remains the same as the original data. Annual profits will
a. increase by $75.
b. decrease by $75.
c. increase by $525.
d. remain the same.

A 250 Unit sales per year 400 250 Selling price per unit Variable costs per unit Unit contribution margin Contribution margin ratio $9.00 $12.00 $ 10.00 3.60 S5.40 60% 9.00 11.00 $(1.00) $ 3.00 (10)% 25%

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