Contribution margin income statement data for the most recent year follow: Total Dog Food $85,000 Cat...

 

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Contribution margin income statement data for the most recent year follow: Total Dog Food $85,000 Cat Food Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) $385,000 $300,000 $205,000 $165,000 $135,000 $50,000 $85,000 $40,000 $180,000 $102,000 $78,000 $45,000 $52,000 S(7,000) Assuming the Dog food line is discontinued, and all fixed costs will go away, how will operating income be affected? A. Decrease $7,000 B. Decrease $45,000 C. Increase $45,000 D. Increase $7,000 Contribution margin income statement data for the most recent year follow: Total Dog Food $85,000 Cat Food Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) $385,000 $300,000 $205,000 $165,000 $135,000 $50,000 $85,000 $40,000 $180,000 $102,000 $78,000 $45,000 $52,000 S(7,000) Assuming the Dog food line is discontinued, and all fixed costs will go away, how will operating income be affected? A. Decrease $7,000 B. Decrease $45,000 C. Increase $45,000 D. Increase $7,000

Answer rating: 100% (QA)

Correct answer D Increase 7000 Net ... View the full answer