Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

Question

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:  If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

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The Answer of Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:  If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

Boots Plus Has Two Product Lines: Hiking Boots and Fashion