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 $33,000 and increase the sale of Curling Irons by 6500 units at a selling price of $33 per unit and a contribution margin of $11 per unit, then discontinuing the Straighteners should result in which of the following?

A) Decrease in total operating income of $54,500
B) Increase in total operating income of $84,500
C) Increase in total operating income of $54,500
D) Decrease in total operating income of $84,500