Black Productions Has Three Models: D,E,and F

Multiple Choice

Black Productions has three models: D,E,and F.The following information is available:

Black Productions is thinking of discontinuing model F because it is reporting an operating loss.All fixed costs are unavoidable.Black Productions discontinues model F and rents the space formerly used to produce product F for $15,000 per year,what effect will this have on operating income?

A) Increase $21,000
B) Increase $5,000
C) Decrease $21,000
D) Decrease $5,000