Acompany has two different products that are sold in different markets. financial data are as? follows:
product a
product b
total
revenue
$ 16 comma 000$16,000
$ 9 comma 400$9,400
$ 25 comma 400$25,400
variable cost
? (7 comma 0007,000? )
? (9 comma 9009,900? )
? (16 comma 90016,900? )
fixed cost? (allocated)
? (1 comma 0001,000? )
? (2 comma 2002,200? )
? (3 comma 2003,200? )
operating income? (loss)
$ 8 comma 000$8,000
? $(2 comma 7002,700? )
$ 5 comma 300$5,300
assume that fixed costs of
$ 1 comma 000$1,000
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?
Answers: 3
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