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ABC Corporation Makes Mattresses in Three Sizes: Twin,queen and King

Question 157

Multiple Choice

ABC Corporation makes mattresses in three sizes: twin,queen and king.Twin mattresses have shown a loss for several years,similar to the operating loss shown below: ABC Corporation makes mattresses in three sizes: twin,queen and king.Twin mattresses have shown a loss for several years,similar to the operating loss shown below: None of the fixed cost is avoidable.What will total operating income for the corporation be if twin mattresses are discontinued? A) $50,000 loss B) $15,000 loss C) $30,000 profit D) $105,000 profit None of the fixed cost is avoidable.What will total operating income for the corporation be if twin mattresses are discontinued?


A) $50,000 loss
B) $15,000 loss
C) $30,000 profit
D) $105,000 profit

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