What will be the impact on income


Langer Company has three products (A, B, and C) that use common facilities. The relevant data concerning these three products follow. A B C Total Sales: $ 10000 $30000 $40000 $80000 Variable cost: $ 5000 $20000 $25000 $50000 Contribution margin: $5000 $10000 $15000 $30000 Fixed cost $5000 $15000 $30000 $50000 Operating cost: $0 $(5000) $(15000) $(20000) Required: If fixed cost allocated to product line C are not avoidable and if product line C dropped, what will be the impact on income?

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Accounting Basics: What will be the impact on income
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