Momentum 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.Assume that $22,000 of total fixed costs could be eliminated by dropping F.What effect would this decision have on operating income?
A) Operating income will increase by $24,000.
B) Operating income will increase by $2000.
C) Operating income will decrease by $24,000.
D) Operating income will decrease by $2000.
Correct Answer:
Verified
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