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 Champion Parts can eliminate fixed costs of $40,000 by dropping the Part C6 line, then dropping it should result in which of the following?
A) Increase in total operating income of $25,000
B) Increase in total operating income of $65,000
C) Decrease in total operating income of $65,000
D) Decrease in total operating income of $25,000
Correct Answer:
Verified
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