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 Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Hiking $480,000 $340,000 374,000 235,000 106,000 105,000 76,000 38,000 $30,000 $67,000 Fashion $140,000 139,000 1,000 38,000 $(37,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? A. Increase in total operating income of $106,000 B. Decrease in total operating income of $1,000 OC. Increase in total operating income of $29,000 OD. Decrease in total operating income of $140,000
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