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Part L2 Part C6 Total $680,000 $275,000 $955,000 $450,000 $210,000 $660,000 $230,000 $65,000 $295,000 Fixed expenses $75,000 $75,000 $150,000 Operating income (loss) $155,000 $(10,000) $145,000
Part L2 Part C6 Total $680,000 $275,000 $955,000 $450,000 $210,000 $660,000 $230,000 $65,000 $295,000 Fixed expenses $75,000 $75,000 $150,000 Operating income (loss) $155,000 $(10,000) $145,000 Sales revenue Variable expenses Contribution margin i) If fixed costs remain unchanged and Champion Parts drops the Part C6 line, how will operating income change? A) Will decrease by $65,000 B) Will increase by $65,000 C) Will decrease by $10,000 D) Will increase by $10,000
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