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Question
Mission Company has three product? lines: D,? E, and F. The following information is? available:
D
E
F
Sales revenue
$80,000
$45,000
$ 20,000
Variable expenses
$41,000
$23,000
$12,000
$39,000
$22,000
$ 8,000
Fixed expenses
$15,000
$17,000
Operating income (loss)
$27,000
$7,000
$(9,000)
Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Mission Company discontinues product line F and rents the space formerly used to produce product F for $22,000 per? year, what affect will this have on operating? income?
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