The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows:
If Lovely Locks can eliminate fixed costs of $32,000 by discontinuing the Straightener line, then discontinuing it should result in which of the following?
A) Increase in total operating income of $50,000
B) Decrease in total operating income of $18,000
C) Increase in total operating income of $18,000
D) Decrease in total operating income of $50,000
Correct Answer:
Verified
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