Solved

Motion Rollerblades Has Three Product Lines-D,E,and F

Question 117

Multiple Choice

Motion Rollerblades has three product lines-D,E,and F.The following information is available:
Motion Rollerblades has three product lines-D,E,and F.The following information is available:   The company is deciding whether to drop product line F because it has an operating loss.Assuming fixed costs are unavoidable,if Motion drops product line F and does not replace it,what effect will this have on operating income? A) Operating income will increase $2000. B) Operating income will increase $21,000. C) Operating income will increase $23,000. D) Operating income will decrease $21,000.
The company is deciding whether to drop product line F because it has an operating loss.Assuming fixed costs are unavoidable,if Motion drops product line F and does not replace it,what effect will this have on operating income?


A) Operating income will increase $2000.
B) Operating income will increase $21,000.
C) Operating income will increase $23,000.
D) Operating income will decrease $21,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents