Question

One company executive has expressed concern about the operating loss that has occurred in Product Line 2 and has suggested that Product Line 2 be discontinued. If Product Line 2 were to be dropped, the operating income of the company would:_______.

Answer 1

Answer:

Increase

Explanation:

Operating income is a company's profit after deducting operating expenses which are the cost of running operations daily.

When the product line 2 is dropped cost of running operations will reduce thereby increasing the operating income.