Linda Fashions Product Line Contribution Margin Income State

Linda Fashions Product Line Contribution Margin Income Statement For the Year Product lines Men\'s Women\'s Accessories 109,000 $ 52,000 $ 98,000 $ 59,000 31,000 88,000 Sales revenue Company Total 259,000 178,000 Less: Variable expenses Contribution margin 50,000 $ 24,000 26,000 $ 21,000 $ 20,000 Less: Fixed expenses 10,000 $ 26,000 (16,000) $ 81,000 70,000 1,000 $ 11,000 Operating income

Solution

Solution - Incremental Analysis For Discontinued Operation

Particulars	Amount
Contribution Margin lost if accessort department is discontinued	($10000)
Less : Fixed costs savings if accessory is discontinued	$26000
Operating Income/(Loss) if accessort department is discontinued	$16000