Diamond is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pre-tax operating income for the firm will likely:

Assuming the company drops Product Line C and does not replace it, pre-tax operating income for the firm will likely:

Explanation:

Since no information was provided, I looked for a similar question:

Item                         Product Line AProduct Line BProduct Line C

Sales                          $30,000$45,000                  $12,000

Variable costs           $18,000$24,000                  $7,500

Contribution margin   $12,000$21,000                  $4,500

Fixed costs:    

    Avoidable                    $4,500           $9,000                  $3,000

    Unavoidable            $3,000           $4,500                  $2,000

Operating income            $4,500           $7,500                    ($500)

total unavoidable fixed costs = $2,000 which will be allocated to product lines A and B

the financial disadvantage of dropping product C = $2,000 (unavoidable costs) - $500 (operating loss) = $1,500

D

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30