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Author Question: Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most ... (Read 105 times)

NClaborn

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on: Jan 4, 2020
Pottery Unlimited has two product lines:  cups and pitchers.  Income statement data for the most recent year follow:

​TotalCupsPitchers
Sales revenue$460,000$310,000$150,000
Variable expenses355,000235,000120,000
Contribution margin105,00075,00030,000
Fixed expenses76,00038,00038,000
Operating income (loss)$29,000$37,000$(8,000)


If $20,000 of Pottery Unlimited's fixed costs will be eliminated by dropping the Pitcher line, how will operating income be affected?
◦ Increase $2,000
◦ Decrease $10,000
◦ Increase $12,000
◦ Decrease $20,000
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Marked as best answer by NClaborn on Jan 4, 2020

micaelaswann

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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NClaborn

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Reply 2 on: Jan 4, 2020
Excellent

ktidd

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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