Question: Motion Rollerblades has three product lineslong dash D , E , and F . The following information is available: D E F Sales revenue $
Motion Rollerblades has three product
lineslong dashD
E and F The following information is available:
D
E
F
Sales revenue
$
$
$
Variable costs
Contribution margin
$
$
$
Fixed costs
Operating incomeloss
$
$
$
The company is deciding whether to drop product line F because it has an operating loss. Assuming fixed costs are unavoidable, if Motion drops product line F and does not replace it what effect will this have on operating income?
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