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Carla Vista Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating
Carla Vista Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss shown below: Twin Queen King Sales $170000 $270000 $300000 Variable costs 73000 158000 189000 Contribution margin 97000 112000 111000 Fixed costs 100000 100000 100000 Operating income ($3000) $12000 $11000 None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued? $30000 loss $23000 profit $120000 profit $77000 loss
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