Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $30,000 per year, 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:  Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $30,000 per year, 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:  Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $30,000 per year, how will operating income be affected?

Boots Plus Has Two Product Lines: Hiking Boots and Fashion