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LUCKY_DIMON [66]
2 years ago
10

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

Business
1 answer:
Alex17521 [72]2 years ago
6 0

When $25,000 of fixed costs will be eliminated by discontinuing, the operating income will increase by $5000.

<h3>How to calculate the operating income?</h3>

From the complete information given, the impact on operating income will be calculated thus:

= Savings fixed cost - Loss on contribution margin

= $25000 - $20000

= $5000

Therefore, the operating income will increase by $5000.

Learn more fixed cost on:

brainly.com/question/3636923

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