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Assume Kabir's grocery store is deciding whether to eliminate the salad bar section of its stores. The product line income statement shows the following quarferly

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Assume Kabir's grocery store is deciding whether to eliminate the salad bar section of its stores. The product line income statement shows the following quarferly data for the salad bar operations: Sales revenue =$870,000 Fixed costs =$105,000 Variable costs =$735,000 1. Only $15,000 of fixed costs can be eliminated if the salad bar is eliminated. The remaining $90,000 of fixed costs are unavoidable. What wil happen to Kabir's operating income if it discontinues the salad bars and does nothing with the freed capacify? 2. Management is thinking about replacing the salad bar section of the stores with a spocialty olive bar, which is projected to bring in $205.000 of contribubion margin each quarter while incurring no additional fixed costs. What will happen to Kabi's operating income if it replaces the salad bars with clive bars? 1. Only $15,000 of fixed costs can be eliminated if the salad bar is eliminated. The remaining $90,000 of fixed costs are unavoidable. What will happen fo Kabirs operating income if it discontinues the salad bars and does nothing with the frand ranavitu

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