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vonschlichten vonschlichten
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7 years ago
All About Animals has two product​ lines: Cat food and Dog food. Contribution margin income statement data for the most recent year​ follow:













                                            TOTAL               CAT FOOD                DOG FOOD
Sales Revenue                     385,000                   300,000                    85,000
Variable expenses                 205,000                  165,000                    40,000
Contribution Margin               180,000                    135,000                   45,000
Fixed Expenses                    102,000                     50,000                   52,000
Operating Income (loss)            78,000                    85,000                   (7,000)

Assuming total fixed costs remain​ unchanged, how would discontinuing the Dog food line affect operating​ income?

A.Increase in total operating income of​ $33,000
B.Increase in total operating income of​ $159,000
C.Decrease in total operating income of​ $111,000
D.Decrease in total operating income of​ $45,000

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7 years ago
D.Decrease in total operating income of​ $45,000
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