The Income Statement for Lovely Locks Is Divided by Its

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 and increase the sale of Curling Irons by 6,000 units at a selling price of $30 per unit and a contribution margin of $8 per unit, then discontinuing the Straighteners should result in which of the following?

A) Decrease in total operating income of $30,000
B) Increase in total operating income of $2,000
C) Increase in total operating income of $30,000
D) Decrease in total operating income of $2,000

Correct Answer:

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