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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
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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
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