Use the information below to answer the following question(s) :
Aqua Life Jackets, Inc. has two product lines: adult jackets and children's jackets. Contribution margin income statement data for the most recent year follow:

-If $10,000 of fixed costs Aqua Life Jackets, Inc. will be eliminated by dropping the children's jackets line, how will operating income be affected?
A) Increase $80,000
B) Increase $18,000
C) Decrease $12,000
D) Decrease $40,000
Correct Answer:
Verified
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