A company has two different products that are sold in different markets.Financial data are as follows:
Assume that fixed costs of $2000 could be eliminated if Product B was dropped.Assume furthermore 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 $2000
B) increases by $2500
C) increases by $500
D) increases by $2100
Correct Answer:
Verified
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