Please do not give solution in image format thanku Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent yearfollow:Sales revenue-Variable expensesContribution margin-Fixed expenses$22,000$81,000$119,000Sporty$49,000$130,000 $360,000-120,000=10,000Luxury-38,000-235,000-125,000-38,000Total=$87,000$490.000=Operating income (loss)$-28,000Assuming the Sporty line is discontinued, total fixed costs remain unchanged and will continue, and the space formerly used toproduce the line is rented for $32,000 per year, what will be the new net operating income?-355,000=135,000-76,000=$59,000

In making a decision about continuation or discontinuation of a business line, income with…

Answered: Westfall Watches has two product lines:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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