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Oriole Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss
Oriole Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss shown below: Sales Twin 155000 Queen 255000 King 285000, Variable Costs twin 80000 queen 155000 king 192000, contribution margin twin 75000 queen 100000 king 93000, fixed costs twin 85000 queen 85000 king 85000, operating income twin -10000 queen 15000 king 8000. None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued
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