Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total $480,000 385,000
Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total $480,000 385,000 95,000 79,000 $16,000 Hiking Fashion $340,000 $140,000 265,000 120,000 75,000 20,000 Fixed expenses 39,500 39,500 Operating income (loss) $35,500 $(19,500) If $26,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Sales revenue Variable expenses Contribution margin
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