Solution-How will operating income be? affected

How will operating income be? affected

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Reference no: EM132315003

Question

Westfall Watches has two product? lines: Luxury watches and Sporty watches. Income statement data for the most recent year? follow:

	Total	Luxury	Sporty
Sales revenue	$530.000	$400.000	$130.000
Variable expenses	355.000	235.000	120.000
Contribution margin	175.000	165.000	10.000
Fixed expenses	81.000	40.500	40.500
Operating income (loss)	$94.000	$124.500	$(30.500)

If $24,000 of fixed costs will be eliminated by discontinuing the Sporty? line, how will operating income be? affected?

Reference no: EM132315003

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How will operating income be? affected : Westfall Watches has two product? lines: Luxury watches and Sporty watches. Income statement data for the most recent year? follow.

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How will operating income be? affected

Reference no: EM132315003

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