The Income Statement for Lovely Locks Is Divided by Its

Multiple Choice

The income statement for Lovely Locks is divided by its two product lines,Curling Irons and Straighteners,as follows:

If Lovely Locks can eliminate fixed costs of $32,000 and increase the sale of Curling Irons by 6,000 units at a selling price of $30 per unit and a contribution margin of $8 per unit,then discontinuing the Straighteners should result in which of the following?

A) Decrease in total operating income of $30,000
B) Increase in total operating income of $2,000
C) Increase in total operating income of $30,000
D) Decrease in total operating income of $2,000