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Merchant of Tennis, Inc. is considering dropping one of its product lines: What a Racquet. The results from the past year are shown below.
Merchant of Tennis, Inc. is considering dropping one of its product lines: What a Racquet. The results from the past year are shown below. What a Racquet Sales in units 10,000 Sales Revenue Variable Costs Fixed Costs $1,100,000 1,000,000 Total for all Products 40,000 $15,500,000 10,500,000 4,000,000 The fixed costs are common allocated fixed costs and are allocated based on number of units. The fixed costs will remain with the company whether any product is dropped. Identify which (if any) of the product lines should be eliminated. If the What a Racquet product line is eliminated, how much will Operating Income increase or decrease. Enter your answer with a minus sign and no $ sign if a decrease.
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