Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most
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Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income?
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Luxury Total Sporty Sales revenue $130,000 $490,000 $360,000 235,000 120,000 Variable expenses 355,000 135,000 Contribution margin 125,000 10,000 Fixed expenses 38,000 38,000 76,000 Operating income (loss) $87,000 $59,000 S(28,000)
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Current operating income 59000 Now if Sporty Line is disc...View the full answer
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Related Book For
Managerial Accounting
ISBN: 978-1118385388
2nd edition
Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle
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