Use the Information Below to Answer the Following Question(s)

question 183

Multiple Choice

Use the information below to answer the following question(s) :
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 $30,000 per year, how will operating income be affected?

• A) Decrease $10,000
• B) Increase $59,000
• C) Increase $10,000
• D) Increase $162,000

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Definitions:

Live Together

A living arrangement in which two or more people share a residence without being married or related to each other.

Marriage

A legally or culturally recognized union between two people, often based on a personal relationship and intended for companionship, support, and, in some cases, procreation.

College Degree

An academic degree awarded by colleges or universities upon completion of a course of study demonstrating mastery in a specific field of study or profession.

Cohabit

A rephrased definition for cohabitation, referring to the lifestyle of partners who live together in an intimate relationship without being married.