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Boots Plus Has Two Product Lines: Hiking Boots and Fashion

Question 78

Multiple Choice

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? A) Increase $5,000 B) Decrease $45,000 C) Increase $54,000 D) Increase $103,000 If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?


A) Increase $5,000
B) Decrease $45,000
C) Increase $54,000
D) Increase $103,000

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