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1.) 2.) 3.) Pottery Unlimited has two product lines: cups and pitchers. Income statement dat for the most recent year follow: Total Cups Sales revenue
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Pottery Unlimited has two product lines: cups and pitchers. Income statement dat for the most recent year follow: Total Cups Sales revenue Variable expenses 355,000 235,000 Contribution margin 105,000 75,000 Fixed expenses 76,000 38,000 Operating income $29,000 $37,000 Pitchers $150,000 120,000 30,000 38,000 $(8,000) $460,000 $310,000 (loss) If $24424 in fixed costs will be eliminated by dropping the CUP line, how will operating income be affected? If income drops, use a negative sign in front of the number
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