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What will operating income for rambo company

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Rambo 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                6,000               15,000             4,000

Unavoidable             7,000                9,000             5,400

Operating income   $ 11,000             $18,000        $ (400)

Problem 1: Rambo Company is thinking of dropping Product C because it is reporting a loss. Assuming Rambo drops Product C and does NOT replace it, operating income will

Reference no: EM132715674

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