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Question 19 (2 points) Current business segment operations for Whitman, a mass retailer are presented...

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Question 19 (2 points) Current business segment operations for Whitman, a mass retailer are presented below: Merchandise Automobile Restaurant Total Sales $500,000 $400,000 $100,000 $1,000,000 Variable costs 300,000 200.000 70.000 570,000 Flored costs 100.000 100,000 50,000 250,000 Operating Income loss) $100,000 $100.000 $120,000) $180,000 Management is considering the discontinuance of the restaurant segment since it is "losing money. If this segment is discontinued, $30,000 of its fixed costs will be eliminated. In addition, the sales volumes of the merchandise and the automobile segments will each decrease by 5% from the current levels How will total operating income be affected if the restaurant segment is discontinued Decrease by $30,000 MacBook Air > 2 3 R E w 3 D F G S 8 X . .Z

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