Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer asap pls Pet Food Inc. has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year

answer asap pls
image text in transcribed
Pet Food Inc. 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 $435,000 $350,000 $85,000 Variable expenses $61,000 $21,000 $40,000 Contribution margin $374,000 $329,000 $45,000 Fixed expenses $101,000 $49.000 $52,000 Operating income (ons) $273,000 $280,000 $(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 $7,000 B. Decrease in total operating income of $501,000 C. Increase in total operating income of $228,000 D. Decrease in total operating income of $45,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

I wasnt sure how to talk about this situation. It was too personal.

Answered: 1 week ago