A Company Has Two Different Products That Are Sold in Different

question 148

Multiple Choice

A company has two different products that are sold in different markets.Financial data are as follows:

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?

• A)increases by $2,000
• B)increases by $300
• C)decreases by $2,000
• D)decreases by $300

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Definitions:

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