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Use the Information Below to Answer the Following Question(s)

Question 130

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Use the information below to answer the following question(s) :
The income statement for Champion Parts is divided by its two product lines, Part L2 and Part C6, as follows:
Use the information below to answer the following question(s) : The income statement for Champion Parts is divided by its two product lines, Part L2 and Part C6, as follows:    -If fixed costs remain unchanged and Champion Parts drops the Part C6 line, how will operating income change? A)  Will decrease by $65,000 B)  Will increase by $65,000 C)  Will decrease by $10,000 D)  Will increase by $10,000
-If fixed costs remain unchanged and Champion Parts drops the Part C6 line, how will operating income change?


A) Will decrease by $65,000
B) Will increase by $65,000
C) Will decrease by $10,000
D) Will increase by $10,000

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