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+ 7 of 10 (10 complete) Score: 0.54 of 1 pt E8-24A (similar to) Suppose Creamy Out considering discontinuing its mallow charms product line. Assume

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+ 7 of 10 (10 complete) Score: 0.54 of 1 pt E8-24A (similar to) Suppose Creamy Out considering discontinuing its mallow charms product line. Assume a daring the past year, the mallow charms product line Income Matement showed the following Click the icon to view the income Matement data) Click the icon for additional information the company decides to discontinue the product line what will happen to the company's operating Income? Shou Creamy Oat discontinue the malowchar product line Begin by preparing a contribution margin income statement for the male charms product line. (Use a missior parentheses to enter a loss) 4.875 000 Los Valable expenses Contribution margin 2975 000 Operating income $ 200.000 productie wil afect Creamy Oars per income Enter Prepare an incremental is to show how the discontinued Incremental Analysis for Discontinuation Decision Contribution margin ostmallow charms is discontinued Loss Fed cost savings i malow charms is discontinued Data Table Operating come d m allow charms is discontinued 5.250.000 1 More info Sales revenue Less Cost of goods sold Gross proft Les Operpenses Operating income foss) 1960,000 Pred manufacturing overhead cows account for 10% of the cost of goods while only of the operating expenses are fred. Since the mallow charms line is just one of the companys cereal s only 0 of deed on the majority of which is advertising beinated if the product lines discontinued. The remainder of the feed cost be incurred by the company Choose from any of enter any number CAI

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