The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows:
If fixed costs remain unchanged and Lovely Locks discontinues the Straightener line, how will operating income change?
A) Will decrease by $150,000
B) Will increase by $50,000
C) Will increase by $150,000
D) Will decrease by $50,000
Correct Answer:
Verified
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