Beautiful Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: ... Total ... Luxury ... Sporty Sales revenue ... $490,000 ... $360,000 ... $130,000 Variable expenses ... 359,000 ... 235,000 ... 124,000 Contribution margin ... 131,000 ... 125,000 ... 6000 Fixed expenses ... 76,000 ... 38,000 ... 38,000 Operating income (loss) ... $55,000 ... $87,000 ... - $32,000 Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income?
A) Decrease in total operating income of $6000
B) Decrease in total operating income of $131,000
C) Increase in total operating income of $49,000
D) Increase in total operating income of $130,000
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Home » Business » Beautiful Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: ... Total ... Luxury ... Sporty Sales revenue ... $490,000 ... $360,000 ... $130,000 Variable expenses ... 359,000 ...