Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the...

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Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year fol

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Answer 1

Answer #1

Operating income for Luxury=$135,500

Less:Unavoidable fixed costs for Sporty line=($39500-$22000)=($17500)

Total net operating income would be=$118,000

Hence increase in operating income

=$118,000-$106,000

=$12,000.

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Answer 2

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