Reference no: EM132706109

Problem 1: Couch sells home furnishings, such as furniture, lamps and lighting and wall art. The company is considering whether to discontinue wall art because of slowing sales. Wall art accounted for total sales of E3,900,000 during the most recent year. Cost of goods sold related to wall art included variable costs of E3,495,000 and fixed costs of (53,500. Operating expenses related to wall art included variable expenses of E320,000 and fixed expenses of 647,800. None of the fixed costs or fixed expenses will be eliminated if wall art is discontinued. If the company's current total income from operations is 310,000, what will the company's total income from operations be if wall art is discontinued?

A) E310,000

B) (225,000)

C) E320,000

D) 685,000