Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow:
Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income?
A) Increase in total operating income of $49,000
B) Increase in total operating income of $130,000
C) Decrease in total operating income of $6000
D) Decrease in total operating income of $131,000
Correct Answer:
Verified
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