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What will be the total operating income for the corporation

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Reference no: EM133104836

Question - Cullumber 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:

 

Twin

Queen

King

Sales

$175000

$275000

$305000

Variable costs

80000

159000

185000

Contribution margin

95000

116000

120000

Fixed costs

105000

105000

105000

Operating income

($10000)

$11000

$15000

None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued?

Reference no: EM133104836

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