Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total Hiking Fashion Sales revenue
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 361,000 235.000 126.000 Contribution margin 119,000 105,000 14,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $43,000 $67,000 S(24,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? ..... O A. Decrease in total operating income of $140,000 OB. Decrease in total operating income of $14,000 O C. Increase in total operating income of $29.000 OD. Increase in total operating income of $119,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started