Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. westfall watches has two product lines: luxury wat

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for...

90.2K

Verified Solution

Question

Accounting

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Luxury Sporty $490,000.00 $360,000.00 $130,000.00 375000 255000 115000 105000 76000 38000 $39,000.00 $67,000.00 120000 10000 38000 -$28,000.00 If $22,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? A) Decrease $32,000 B) Increase $12,000 C) Increase $7000 D) Increase $90,000 T
image
If $22,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? A) Decrease $32,000 8) Increase $12,000 C) Increase $7000 D) Increase $90,000

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