Eagan Company has three product lines, A, B and C. The following information is available:

-Eagan is thinking of dropping product line B since it is losing money. Assuming Eagan drops line B and does NOT replace it, the operating income will
A) increase $ 2,000.
B) decrease $ 4,000.
C) decrease $10,500.
D) not change.

Question

Eagan Company has three product lines, A, B and C. The following information is available:
  
-Eagan is thinking of dropping product line B since it is losing money. Assuming Eagan drops line B and does NOT replace it, the operating income will
A) increase $ 2,000. 
B) decrease $ 4,000. 
C) decrease $10,500. 
D) not change.

Quizplus · Accepted Answer

The Answer of Eagan Company has three product lines, A, B and C. The following information is available:
  
-Eagan is thinking of dropping product line B since it is losing money. Assuming Eagan drops line B and does NOT replace it, the operating income will
A) increase $ 2,000. 
B) decrease $ 4,000. 
C) decrease $10,500. 
D) not change.

Eagan Company Has Three Product Lines, A, B and C