Pottery Unlimited Has Two Product Lines: Cups and Pitchers

question 94

Multiple Choice

Pottery Unlimited has two product lines: cups and pitchers.Income statement data for the most recent year follow:
- If $20,000 of fixed costs will be eliminated by dropping the Pitcher line,how will operating income be affected?

• A)Increase $19,000
• B)Decrease $50,000
• C)Decrease $10,000
• D)Increase $48,000

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