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Tiger King Inc has three product lines-T, A and E. The following information is available: Sales revenue Variable costs Contribution margin Fixed costs Operating income
Tiger King Inc has three product lines-T, A and E. The following information is available: Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) TA $90,000 $40,000 $31,000 (40.000 (15.000) (10.000 $50,000 $25,000 $21,000 (20,000_(15,000123.000) $30,000 $10,000 $12000% Tiger King is considering discontinuing product line E because it has an operating loss. Assuming fixed costs are unavoidable, if Tiger King product line E and does not replace it, what effect will this have on operating income? Operating income will increase $21,000. Operating income will increase $2000. Operating income will decrease $21,000. Operating income will increase $23,000
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