Question: . Management is thinking about replacing the salad bar section of the stores with a specialty olive bar, which is projected to bring in $
Management is thinking about replacing the salad bar section of the stores with a specialty olive bar, which is projected to bring in $ comma of contribution margin each quarter while incurring no additional fixed costs. What will happen to Kales operating income if it replaces the salad bars with olive bars? Use a minus sign or parentheses for a decrease in operating income.
If Salad Bars are Replaced with Olive Bars
Total
Contribution margin provided by olive bar
$
Less: Operating income lost if salad bars are discontinued
IncreaseDecrease in operating income from replacing salad bars with olive bars
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