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EX 1 1 - 6 Decision to discontinue a product Obj. 1 On the basis of the following data, the general manager of Hawkeye Shoes
EX Decision to discontinue a product
Obj.
On the basis of the following data, the general manager of Hawkeye Shoes Inc. decided to discontinue Children's Shoes because it reduced operating income by $ What is the flaw in this decision, if it is assumed fixed costs would not be materially affected by the discontinuance?
Hawkeye Shoes Inc.
ProductLine Income Statement
For the Year Ended November Y
tableFor the Year Ended November
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