Multiple Choice
Use the following information for the next 3 questions.
Ricardo Company has three products, A, B, and C. The following information is available: 
-Suppose that eliminating Product C will free up warehouse space for Product A's use, and will reduce the avoidable fixed costs of Product A by $1,500. If Ricardo drops Product C, then operating income will
A) Increase by $3,700
B) Decrease by $14,500
C) Decrease by $8,300
D) Decrease by $2,500
Correct Answer:
Verified
Correct Answer:
Verified
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