EX $11-6$ Decision to discontinue a product

Obj. $1$

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 $$30,000.$ What is the flaw in this decision, if it is assumed fixed costs would not be materially affected by the discontinuance?

Hawkeye Shoes Inc.

Product$-$Line Income Statement

For the Year Ended November $30,20$ Y$8$

$\backslash$table$[[$For the Year Ended November $30,20Y8$