Jim Bean Company has three product lines: D,E,and F.The following information is available:
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed costs are unavoidable.Assume Jim Bean Company is able to increase the sales revenue of product F to $32,000 with no change in volume of units sold and no change in variable costs or fixed costs.What affect will this have on operating income?

Question

Jim Bean Company has three product lines: D,E,and F.The following information is available: 
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed costs are unavoidable.Assume Jim Bean Company is able to increase the sales revenue of product F to $32,000 with no change in volume of units sold and no change in variable costs or fixed costs.What affect will this have on operating income?

Quizplus · Accepted Answer

B) 11ea7fd5_673f_d76a_99dd_c329933c38fc_TB1766_00 11ea7fd5_673f_fe7b_99dd_9dafcfcb4c73_TB1766_00

Jim Bean Company Has Three Product Lines: D,E,and F