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2 The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Toaster Microwave Total Sales revenue $600,000
2 The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Toaster Microwave Total Sales revenue $600,000 $255,000 $855,000 Variable expenses $400,000 $210,000 $610,000 Contribution margin $200,000 $45,000 $245,000 Fixed expenses $75,000 $75,000 $150,000 A. Decrease in total operating income of $21,000 B. Decrease in total operating income of $56,000 C. Increase in total operating income of $21,000 OD. Increase in total operating income of $56,000 Click to select your answer. variace expenses 3400UUU SZUUUU UUUU Contribution margin $200,000 $45.000 $245.000 Fixed expenses $75,000 $75,000 $150,000 Operating income (loss) $125.000 $(30.000) $95.000 Germain Appliances can eliminate fixed costs of $35.000 and increase the sale of Toasters by 6.000 units at a selling price of $32 per unit and a contribution margin of $11 per unit, then discontinuing the Microwaves should result in which of the following? O A. Decrease in total operating income of $21,000 OB. Decrease in total operating income of $56.000 OC Increase in total operating income of 521.000 OD. Increase in total operating income of $56,000
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