ABC Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a...

 

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ABC Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss shown below: Sales Variable costs Contribution margin Fixed costs Operating income Twin $150,000 75,000 75,000 80,000 ($ 5,000) a. $50,000 loss b. $15,000 loss c. $30,000 profit d. $105,000 profit Queen $250,000 150,000 100,000 80,000 $ 20,000 King $280,000 190,000 90,000 80,000 $ 10,000 None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued? ABC Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss shown below: Sales Variable costs Contribution margin Fixed costs Operating income Twin $150,000 75,000 75,000 80,000 ($ 5,000) a. $50,000 loss b. $15,000 loss c. $30,000 profit d. $105,000 profit Queen $250,000 150,000 100,000 80,000 $ 20,000 King $280,000 190,000 90,000 80,000 $ 10,000 None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued?

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