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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 $85,000

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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