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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

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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 $415,000 $330,000 $85,000 Variable expenses $65,000 $25,000 $40,000 Contribution margin $350,000 $305,000 $45,000 Fixed expenses $97,000 $45,000 $52,000 Operating income (loss) $253,000 $260,000 $(7,000) $12,000 of fixed costs will be eliminated by discontinuing the Dog food line, how will operating income be affected? A. Decrease $33,000 B. Decrease $52,000 c. Increase $473,000 OD. Increase $220,000

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