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Footwear company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Sales revenue Variable expenses
Footwear company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $480,000 Hiking Fashion $340,000 $140,000 358,000 235,000 123,000 122,000 105,000 17,000 76,000 38,000 38,000 $46,000 $67,000 $(21,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? OA. Decrease in total operating income of $140,000 B. Decrease in total operating income of $17,000 C. Increase in total operating income of $122,000 OD. Increase in total operating income of $29,000
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