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Westfall Watches Has Two Product Lines: Luxury Watches and Sporty

Question 61

Multiple Choice

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? A) Increase in total operating income of $49,000 B) Increase in total operating income of $142,000 C) Decrease in total operating income of $10,000 D) Decrease in total operating income of $108,000 Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income?


A) Increase in total operating income of $49,000
B) Increase in total operating income of $142,000
C) Decrease in total operating income of $10,000
D) Decrease in total operating income of $108,000

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