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Boots Plus Has Two Product Lines: Hiking Boots and Fashion

Question 85

Multiple Choice

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income be affected? A) Decrease $8000 B) Increase $64,000 C) Increase $8000 D) Increase $120,000 Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income be affected?


A) Decrease $8000
B) Increase $64,000
C) Increase $8000
D) Increase $120,000

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