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Karison Roller Skates has reproduct lines . E. and F. The following formation is available: DEF Sales revenue 590.000 $50,000 $31,000 Variable costs 140.000) (10.000)
Karison Roller Skates has reproduct lines . E. and F. The following formation is available: DEF Sales revenue 590.000 $50,000 $31,000 Variable costs 140.000) (10.000) (11.000) Contribution margin $50,000 $40.000 $20.000 Fixed costs (20,000) (10.000) (24,000) Operating income foss) 530.000 $30,000 $14.000) The company is deciding whether to drop product line because it has an operating loss. Assuming and costs are unavoidable, if Karlson drops product line F and rents the space formerly used to produce product F for $18,000 per year, total operating income will be O A $24,000 OB. $20,000 OC. $11,000 OD. $54,000
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