Albany Industries Produces Two Products

Multiple Choice

Albany Industries produces two products.Information about the products is as follows: The company's fixed costs totaled $70,000,of which $15,000 can be directly traced to Product 1 and $40,000 can be directly traced to Product 2.The effect on the firm's profits if Product 2 is dropped would be a

A) $10,000 increase
B) $35,000 increase
C) $35,000 decrease
D) $10,000 decrease