Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?
A)Increase in total operating income of $29,000
B)Increase in total operating income of $125,000
C)Decrease in total operating income of $140,000
D)Decrease in total operating income of $20,000

Question

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:  Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?
A)Increase in total operating income of $29,000 
B)Increase in total operating income of $125,000 
C)Decrease in total operating income of $140,000 
D)Decrease in total operating income of $20,000

Quizplus · Accepted Answer

The Answer of Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:  Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?
A)Increase in total operating income of $29,000 
B)Increase in total operating income of $125,000 
C)Decrease in total operating income of $140,000 
D)Decrease in total operating income of $20,000

Boots Plus Has Two Product Lines: Hiking Boots and Fashion