The following information pertains to Dallas Churning Company's three products: $\begin{array}{lrrr}&D&E&F\
\text { Unit sales per month } & 900 & 1,400 & 800 \
\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \
\text { Variable costs per unit } & 3.00 & 9.00 & 7.80 \
\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$(0.30)
\end{array}$
Assume that product F is discontinued and the space used to produce product F is rented for $600 per month. Monthly profits will
A)increase by $360.
B)increase by $840.
C)increase by $600.
D)decrease by $5,400.

Question

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The Answer of The following information pertains to Dallas Churning Company's three products: $\begin{array}{lrrr}&D&E&F\
\text { Unit sales per month } & 900 & 1,400 & 800 \
\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \
\text { Variable costs per unit } & 3.00 & 9.00 & 7.80 \
\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$(0.30)
\end{array}$
Assume that product F is discontinued and the space used to produce product F is rented for $600 per month. Monthly profits will
A)increase by $360.
B)increase by $840.
C)increase by $600.
D)decrease by $5,400.

The Following Information Pertains to Dallas Churning Company's Three Products