Question: Question 48 2 pts Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Hiking
Question 48 2 pts Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Hiking Fashion Total Sales Revenue $380.000 $140,000 $520,000 Less: Variable Expenses $275.000 $120.000 $395.000 Contribution Margin $105,000 $20,000 $125.000 Les Fixed Expenses $40,000 $40.000 $80,000 Operating Income (Loss) $65,000 $(20,000) $45,000 If all fixed costs are unavoidable and will not be eliminated by discontinuing the Fashion line), how will operating income be affected it Boots Plus discontinues the Fashion Line? Decrease $20,000 Decrease $60.000 Increase $20,000 Increase $40,000
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