q21

Total sales revenue Variable costs Contribution margin Fixed costs Net operating loss $193,000 $95,000 $98,000 $105,000 -$7,000 If the line of purses were to be discontinued, the company would avoid $18,000 in fixed costs per year. If Purses Incorporated were to discontinue the line of purses, the change in annual operating income would be a(n) o increase in total operating income of $7,000. O decrease in total operating income of $80,000. O increase in total operating income of $80,000. decrease in total operating income of $7,000. Next He