Question
Firm A has three product lines with the following revenues and expenses: A B C Sales revenue $ 80,000 $42,000 $60,000 Variable expenses $ 65,000
Firm A has three product lines with the following revenues and expenses:
| A | B | C | |
| Sales revenue | $ 80,000 | $42,000 | $60,000 |
| Variable expenses | $ 65,000 | $21,000 | $12,000 |
| Contribution margin | $ 15,000 | $21,000 | $48,000 |
| Fixed expenses | $ 19,000 | $15,000 | $17,000 |
| Operating income (loss) | ($4,000) | $6,000 | $31,000 |
All fixed expenses are unavoidable. What is the effect on operating income of discontinuing product line A?
Group of answer choices
Increase $15,000
Decrease $15,000
Increase $4,000
Increase $19,000
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Ethics And The Internal Auditors Political Dilemma Tools And Techniques To Evaluate A Companys Ethical Culture Internal Audit And IT Audit
Authors: Lynn Fountain
1st Edition
149876780X, 978-1498767804
