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 fixed costs remain unchanged and Lovely Locks discontinues the Straightener line, how will operating income change?

A) Will decrease by $200,000
B) Will increase by $50,000
C) Will increase by $200,000
D) Will decrease by $50,000