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. Best Brands Inc. sells cat food and dog food. Here are data for the current year: Cat Food Dog Food Total Sales revenue $300,000
. Best Brands Inc. sells cat food and dog food. Here are data for the current year:
| Cat Food | Dog Food | Total |
Sales revenue | $300,000 | $85,000 | $385,000 |
Variable costs | (160,000) | (48,000) | (208,000) |
Contribution margin | $140,000 | $37,000 | $177,000 |
Traceable fixed costs | 0 | 0 | 0 |
Common fixed costs | (50,000) | (52,000) | (102,000) |
Operating income (loss) | $90,000 | $(15,000) | $75,000 |
If Best Brands discontinues the dog food product line, the machine time formerly used to produce dog food can be used to double the production of cat food. How would this impact operating income?
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