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Accelerate Rollerblades has tree product ines-DE, and F. The following information is available Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss)
Accelerate Rollerblades has tree product ines-DE, and F. The following information is available Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) D $30,000 E $60,000 F $31,000 (20,000) (15,000) (12.000) $60,000 $45.000 $19,000 (15.000) (10.000) $45 000 $35,000 (25.000) $06.000) The company is deciding whether to drop product line F because it has an operating loss Assume that $15.000 of total fixed costs could be eliminated by dropping What affect would this decision have on operating incoo? OA Operating income will increase by $19,000 OB Operating income will decrease by $15,000 OC Operating income will decrease by $4,000 OD. Operating income wit increase by $34.000
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