Use the following information for the next two questions. …
Use the following information for the next two questions. Denly Company has three products, A, B, and C. The following information is available: Product A Product B Product C Sales $60,000 $90,000 $24,000 Variable costs 36,000 48,000 15,000 Contribution margin 24,000 42,000 9,000 Fixed costs: Avoidable 9,000 18,000 6,000 Unavoidable 6,000 9,000 5,400 Operating income $ 9,000 $15,000 $ (2,400) Denly Company is thinking of dropping Product C because it is reporting a loss. Assuming Denly drops Product C and does not replace it, operating income will: