Jim Bean Company has three product lines: D,E,and F.The following information is available:
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed costs are unavoidable.Jim Bean Company discontinues product line F and rents the space formerly used to produce product F for $20,000 per year,what affect will this have on operating income?

Question

Jim Bean Company has three product lines: D,E,and F.The following information is available: 
Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss.All fixed costs are unavoidable.Jim Bean Company discontinues product line F and rents the space formerly used to produce product F for $20,000 per year,what affect will this have on operating income?

Quizplus · Accepted Answer

B) 11ea7fd5_673e_ed04_99dd_115b3dffea99_TB1766_00 11ea7fd5_673f_1415_99dd_438c4b7b39cf_TB1766_00

Jim Bean Company Has Three Product Lines: D,E,and F