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Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total Hiking Fashion Sales
Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 357,000 235,000 122,000 Contribution margin 123.000 105.000 18,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $47.000 $67,000 $(20,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? .... O A. Decrease in total operating income of $140,000 O B. Increase in total operating income of $123,000 OC. Increase in total operating income of $29,000 OD. Decrease in total operating income of $18,000
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