Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 43. boots plus has two product lines: hiking boots

43. Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data...

70.2K

Verified Solution

Question

Accounting

image
43. Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total $500,000 $360,000 $140,000 395,000 275,000 120,000 105,000 85,000 20,000 9,000 Hiking Fashion Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) $26,000 $45,500 $(19,500) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income be affected? 39,500 39,500 A.Increase $60,000 B.Increase $8,000 C. Decrease $8,000 D.Increase $34,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students