The following information is available on Tackler Co.'s two product lines: Sales Variable costs Contribution margin Chairs Tables $180,000 $48,000 ⁹6,000) (30,000) 84,000 18,000 Fixed costs: Avoidable (36,000) (12,000) Unavoidable (18,000) (10,800) Operating income (loss) $30,000 ($4,800) Assuming Tackler discontinues the tables line and does not replace it, the company's operating income will

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information is available on Tackler Co.'s two product lines:
Chairs
Tables
$180,000 $48,000
96,000) (30,000)
84,000 18,000
Sales
Variable costs
Contribution margin
Fixed costs:
Avoidable
(36,000) (12,000)
Unavoidable
(18,000) (10,800)
Operating income (loss) $30,000 ($ 4,800)
Assuming Tackler discontinues the tables line and does not replace it, the company's operating income will
Transcribed Image Text:The following information is available on Tackler Co.'s two product lines: Chairs Tables $180,000 $48,000 96,000) (30,000) 84,000 18,000 Sales Variable costs Contribution margin Fixed costs: Avoidable (36,000) (12,000) Unavoidable (18,000) (10,800) Operating income (loss) $30,000 ($ 4,800) Assuming Tackler discontinues the tables line and does not replace it, the company's operating income will
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