Pottery Unlimited has two product lines: cups and pitchers.Income statement data for the most recent year follow:
- Assuming the Pitcher line is dropped,total fixed costs remain unchanged,and the space formerly used to produce the line is rented for $45,000 per year,how will operating income be affected?

Question

Pottery Unlimited has two product lines: cups and pitchers.Income statement data for the most recent year follow: 
- Assuming the Pitcher line is dropped,total fixed costs remain unchanged,and the space formerly used to produce the line is rented for $45,000 per year,how will operating income be affected?

Quizplus · Accepted Answer

The Answer of  Pottery Unlimited has two product lines: cups and pitchers.Income statement data for the most recent year follow: 
- Assuming the Pitcher line is dropped,total fixed costs remain unchanged,and the space formerly used to produce the line is rented for $45,000 per year,how will operating income be affected?

Pottery Unlimited Has Two Product Lines: Cups and Pitchers