Question: 6 i just need formula and how to do it Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking $340,000 Fashion $140,000 Sales revenue $480,000 Variable expenses 360,000 235,000 125.000 Contribution margin 2/2 Fixed expenses :5 Operating income (loss) 120.000 105,000 15.000 76.000 38,000 38.000 $(23.000) S44.000 $67.000 Assuming fixed costs remain unchanged. how would discontinuing the Fashion line affect operating income? OA. Increase in total operating income of $120.000 2/2 O B. Decrease in total operating income of $140,000 O C Decrease in total operating income of $15.000 OD Increase in total operating income of $20.000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
