Homework Answers
Answer : E $ 4,839
contribution Margin Ratio of Product = 35,260 /86000= 41%
| Reduction in the Contribution Margin of Products A | -$36,900 |
| Additional Fixed cost for Product B | -$4,200 |
| Reduction in the Avoidable Fixed Cost of Product A | 33,762 |
| Increase in Contribution Margin of Product B (29700 *41%) | 12,177 |
| Increase in Net operating income | 4,839 |
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Sales
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Variable Costs
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Contribution margin
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Fixed costs:
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Unavoidable
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