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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