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The Income Statement for Lovely Locks Is Divided by Its

Question 108

Multiple Choice

The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: If Lovely Locks can eliminate fixed costs of $32,000 by discontinuing the Straightener line, then discontinuing it should result in which of the following? A) Increase in total operating income of $50,000 B) Decrease in total operating income of $18,000 C) Increase in total operating income of $18,000 D) Decrease in total operating income of $50,000 If Lovely Locks can eliminate fixed costs of $32,000 by discontinuing the Straightener line, then discontinuing it should result in which of the following?


A) Increase in total operating income of $50,000
B) Decrease in total operating income of $18,000
C) Increase in total operating income of $18,000
D) Decrease in total operating income of $50,000

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