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Rainbow Brothers Inc. has beo product lines Rain coats and Bnow boots. The following is data in its income statement for the most recent year
Rainbow Brothers Inc. has beo product lines Rain coats and Bnow boots. The following is data in its income statement for the most recent year Sales revenue Variable expenses Contribution margin Fixed expenses Operating income() Rain Coats Total $520,000 $380,000 375.000 255,000 145.000 125,000 79,000 39,500 $66.000 $85.500 Snow Boots $140,000 120,000 20,000 39,500 $19.500) This question 3 pop $29,000 of fixed costs will be eliminated by discontinuing the Snow Boots ine, how will operating income be affected? OA Increase $141.000 OB Increase $9,000 OC Decrease $48,500 OD. Increase $75.000
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