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ABC Corporation Makes Mattresses in Three Sizes: Twin,queen and King

Question 147

Multiple Choice

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:
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:    None of the fixed cost is avoidable.What will total operating income for the corporation be if twin mattresses are discontinued?  A)  $50,000 loss B)  $15,000 loss C)  $30,000 profit D)  $105,000 profit None of the fixed cost is avoidable.What will total operating income for the corporation be if twin mattresses are discontinued?


A) $50,000 loss
B) $15,000 loss
C) $30,000 profit
D) $105,000 profit

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