Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be affected?

Question

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow:  Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be affected?

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The Answer of Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow:  Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be affected?

Westfall Watches Has Two Product Lines: Luxury Watches and Sporty