Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $30,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?
A)Increase $10,000
B)Decrease $49,000
C)Increase $54,000
D)Increase $99,000

Question

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:  If $30,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?
A)Increase $10,000 
B)Decrease $49,000 
C)Increase $54,000 
D)Increase $99,000

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:  If $30,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?
A)Increase $10,000 
B)Decrease $49,000 
C)Increase $54,000 
D)Increase $99,000

Boots Plus Has Two Product Lines: Hiking Boots and Fashion