The Following Information Pertains to Salamandre Company's Three Products Assume That Product C Is Discontinued and the Extra Space

Multiple Choice

The following information pertains to Salamandre Company's three products: $\begin{array}{lrrr}&A&B&C\\\text { Unit sales per year } & 250 & 400 & 250 \\\text { Selling price per unit } & \$ 9.00 & \$ 12.00 & \$ 10.00 \\\text { Variable costs per unit } & 3.60 & 9.00 & 11.00\\\text { Unit contribution margin } & \$ 5.40 & \$ 3.00 & \$(1.00) \\\text { Contribution margin ratio } & 60 \% & 25 \% & (10) \%\end{array}$ Assume that product C is discontinued and the extra space is rented for $300 per month. All other information remains the same as the original data. Annual profits will

A) remain the same.
B) increase by $250.
C) decrease by $250.
D) increase by $550.