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BlossomIndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping
BlossomIndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year: Home Retail Industrial Total Sales $551200 $321200 $831200 $1703600 Variable costs 358700 218800 681900 1259400 Contribution 192500 102400 149300 444200 margin Fixed costs 126200 131200 116200 373600 Operating income $66300 $(28800) $33100 $70600 Of the fixed costs, $318600 of it is common costs that have been allocated equally to each product line. What will total operating income be if Blossom drops the retail line? O $23200 O $(6800) O $99400Of the fixed costs, $318600 of it is common costs that have been allocated equally to each product line. What will total operating income be if Blossom drops the retail line? O $23200 O $(6800) O $99400 O $77400
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