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Wind, Inc. has two product linesfans and air conditioners. The income statement data for the most recent year is as follows: Total Fans Air Conditioners
Wind, Inc. has two product linesfans and air conditioners. The income statement data for the most recent year is as follows: Total Fans Air Conditioners Sales revenue $1,050,000 $700,000 $350,000 Variable costs (430,000) (150,000) (280,000) Contribution margin $620,000 $550,000 $70,000 Allocated fixed costs (180,000) (90,000) (90,000) Operating income (loss) $440,000 $460,000 $(20,000) If $50,000 of fixed costs will be eliminated by dropping the air conditioners line, how will this affect operating income of the company
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