Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for...
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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 $490,000 $350,000 $140,000 Variable expenses 395,000 275,000 120,000 Contribution margin 95,000 75,000 20.000 Fixed expenses 79,000 39,500 39,500 Operating income (loss) $16,000 $35,500 S(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
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