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Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $460.000 355,000 105.000 76.000 $29.000 Cups $310,000 235,000 75,000 38,000 $37.000 Pitchers $150,000 120,000 30.000 38,000 S(8,000) Assuming Pottery Unlimited's fixed costs remain unchanged, how would dropping the Pitcher line affect operating income? A. Decrease in total operating income of $30.000 B. Increase in total operating income of $22.000 C. Decrease in total operating income of $1.000 D. Increase in total operating income of $8.000
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