Question: This question: 8 point(s) possible Submit tes Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most
This question: 8 point(s) possible Submit tes Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most rec year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Hiking Fashion $510,000 $370,000 $140,000 355,000 235,000 120,000 155,000 135,000 20,000 79,000 39,500 39,500 $76,000 $95,500 $(19,500) If $29,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Show your work, calculate the amount, and state whether this is an increase or decrease
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