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Is it A, B, C, or D Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent
Is it A, B, C, or D
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 355,000 235,000 120,000 Contribution margin 125,000 105,000 20,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $49,000 $67,000 ($18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Increase $5,000 Increase $18,000 Decrease $5,000 Decrease $18,000 Step by Step Solution
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