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Question 14 5 pts Our company has two product lines: treadmills and bicycles. This table shows the income statement data for the most recent year:
Question 14 5 pts Our company has two product lines: treadmills and bicycles. This table shows the income statement data for the most recent year: Total Treadmills Bicycles Sales Revenue $700.000 $520,000 $1,220.000 Variable Costs $(350.000) $(450.000) $(800.000 Contribution Margin $350.000 $70,000 $420.000 Fixed Costs $190.000) $180.000) $(170,000) Operating Income (Loss) $260.000 $(10,000) $250.000 What effect would dropping the bicycle line have on our operating income? Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales. o Operating income will increase by $10,000. Operating income will increase by $70,000. Operating income will decrease by $70.000. Operating income will decrease by $10.000
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