A company has two different products that sell to separate markets. Financial data are as follows:
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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 the impact be on total operating income?
A) Increase $1,100
B) Increase $100
C) Decrease $1,100
D) Decrease $100
Correct Answer:
Verified
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