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Use the information below to answer the following question(s): Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent
Use the information below to answer the following question(s): Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow: Total Cups Pitchers Sales revenue $460,000 $310,000 $150,000 Variable expenses 355,000 235,000 120,000 Contribution margin 105,000 75,000 30,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $29,000 $37,000 $.(8,000 If $20,000 of Pottery Unlimited's fixed costs will be eliminated by dropping the Pitcher line, how will operating income be affected? Select one: A. Increase $12,000 B. Increase $2,000 C. Decrease $20,000 D. Decrease $10,000 CLEAR MY CHOICE
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