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Business, 28.06.2020 02:01 angelcat9137

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total Hiking Fashion Sales revenue $ 490 comma 000 $ 350 comma 000 $140,000 Variable expenses 385 comma 000 265 comma 000 120,000 Contribution margin 105 comma 000 85 comma 000 20,000 Fixed expenses 80 comma 000 40 comma 000 40 comma 000 Operating income (loss) $25 comma 000 $ 45 comma 000 $( 20 comma 000 ) If $ 29 comma 000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

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