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Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you Striebeak Compny has two product lines-Training suits and football shoes. Income
Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you
Striebeak Compny has two product lines-Training suits and football shoes. Income statement data for the most recent year follow: Total Training suits football shoes Sales revenue $850,000 $500,000 $350,000 Variable expenses (530,000) (250,000) (280,000) Contribution margin $320,000 $250,000 $70,000 Fixed expenses (180,000) (90,000) (90,000) Operating income (loss) $140,000 $160,000 $(20,000) Assuming the football shoes line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $80,000 per year, how will operating income be affected? Select one: O Operating income will increase $800,000. O Operating income will decrease $80,000. o Operating income will increase $30,000. o Operating income will increase $10,000. Operating income will decrease $30,000. O Operating income will increase $300,000Step by Step Solution
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