Sanama Industries has three product lines: A,B and C.The following annual information is available: Sanama Industries is thinking about dropping Product C because it is reporting a loss.Assume Sanama Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year.What will happen to operating income?
A)increase $6,600
B)increase $9,000
C)increase $14,400
D)increase $15,000

Question

Sanama Industries has three product lines: A,B and C.The following annual information is available:  Sanama Industries is thinking about dropping Product C because it is reporting a loss.Assume Sanama Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year.What will happen to operating income?
A)increase $6,600 
B)increase $9,000 
C)increase $14,400 
D)increase $15,000

Quizplus · Accepted Answer

The Answer of Sanama Industries has three product lines: A,B and C.The following annual information is available:  Sanama Industries is thinking about dropping Product C because it is reporting a loss.Assume Sanama Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year.What will happen to operating income?
A)increase $6,600 
B)increase $9,000 
C)increase $14,400 
D)increase $15,000

Sanama Industries Has Three Product Lines: A,B and C