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Boots Plus has two product ines Hiking boots and Fashion boots, Income statement data for the most recent year follow: HikingFashion $520,000 $380,000 $140,000 255,000
Boots Plus has two product ines Hiking boots and Fashion boots, Income statement data for the most recent year follow: HikingFashion $520,000 $380,000 $140,000 255,000 120,000 20,000 38,000 87,000 (18,000) Sales revenue Variable expenses 375,000 145,000 76,000 125,000 38,000 margin Fixed expenses If $26,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? OA. Increase S75000 B. Decrease $44,000 O C. Increase $144,000 OD. Increase $6,000
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