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:

-Assuming the Aqua Life Jackets, Inc. children's jackets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the children's jackets line is used to double the production of adult jackets, how will operating income be affected?
A) Increase $110,000
B) Increase $60,000
C) Increase $118,000
D) Decrease $60,000
Correct Answer:
Verified
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