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

question 94

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:

-If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

• A) Increase $5,000
• B) Decrease $45,000
• C) Increase $54,000
• D) Increase $103,000

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