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Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow TOTAL CUPS PITCHERS Sales Revenue 460,000 310,000
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow
| TOTAL | CUPS | PITCHERS | |
| Sales Revenue | 460,000 | 310,000 | 150,000 |
| Variable Expenses | 355,000 | 235,000 | 120,000 |
| Contribution Margin | 105,000 | 75,000 | 30,000 |
| Fixed Expenses | 76,000 | 38,000 | 38,000 |
| Operating Income (Loss) | 29,000 | 37,000 | (8,000) |
If $20412 in fixed costs will be eliminated by dropping the CUP line, how will operating income be affected?
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Authors: Raven Catlin, Danny M Goldberg, Ceciliana Watkins
1st Edition
