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Current Attempt in Progress Sunlandindustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and
Current Attempt in Progress Sunlandindustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year: Home Retail Industrial Total Sales $550800 $320800 $830800 $1702400 Variable costs 358200 218500 681700 1258400 192600 102300 149100 444000 Contribution margin Fixed costs 125800 130800 115800 372400 Operating income $66800 $(28500) $33300 $71600 of the fixed costs, $317400 of it is common costs that have been allocated equally to each product line. What will total operating income be if Sunland drops the retailline? $77300 $24300 $(5700) $100100
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