8)

Tike Industries is an apparel company that makes and sells both casual wear and sportswear. Here are data for the current year: Tike's accountant allocated the common fixed costs between the product lines based on sales revenue. Tike plans to discontinue the production of casual wear and use the freed-up capacity to triple the production and sale of sportswear. Although this will eliminate the traceable fixed costs for casual wear, the traceable fixed costs for sportswear will double. If Tike discontinues the casual wear product line, what would be the amount of the increase in Tike's operating income? Round to the nearest whole dollar and do not enter a dollar sign or a decimal point (e.g., enter 89 , not $89.00 )