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A Company Has Two Different Products That Are Sold in Different

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A company has two different products that are sold in different markets. Financial data are as follows:  Product A  Product B  Total  Revenue $15,000$9,500$24,500 Variable cost (9,000) (9,800) (18,800)  Fixed cost (allocated)  (3,000) (2,000) (5,000)  Operating income $3,000($2,300) $700\begin{array} { | l | r | r | r | } \hline & \text { Product A } & \text { Product B } & { \text { Total } } \\\hline \text { Revenue } & \$ 15,000 & \$ 9,500 & \$ 24,500 \\\hline \text { Variable cost } & ( 9,000 ) & ( 9,800 ) & ( 18,800 ) \\\hline \text { Fixed cost (allocated) } & ( 3,000 ) & ( 2,000 ) & ( 5,000 ) \\\hline \text { Operating income } & \$ 3,000 & ( \$ 2,300 ) & \$ 700 \\\hline\end{array} Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company?

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Definitions:

Kosher Foods

Foods that comply with the dietary standards of kashrut, the Jewish dietary law, including the prohibition of certain animals and the separation of meat and dairy products.

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The essential nutrients needed by the human body for growth, reproduction, overall health, and maintenance.

Breastfeeding

The process of feeding a baby with milk directly from the mother's breast to provide essential nutrients and antibodies.

Altered Food Flavor

A change in the usual taste of food that can be due to various factors like health conditions, treatment, or storage methods.

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