Chrome File Edit View History Bookmarks People Window Help 4) A 49% Sat Dec 3 15:52 Do Homework yutaka wako https://www.mathxl.com/Stude Student/PlayerHomework aspx?homeworkld 375978943&questionld &cld 4035971&ce yes BUSAC 187-9018 Managerial Accounting -Online-Fall 2016 yutaka wako 12/3/16 3:52 PM Homework: Chapter 8 Score: 0.38 of 1 pt HW Score: 35.01%, 5.25 of 15 pts 7 of 10 complete) E8-35B (book/static) Question Help Suppose Grain Day Cereals is considering discontinuing its maple cereal product line. Assume that during the past year, the maple cereal product line income statement showed the following EEE (Click the icon to view the income statement data.) Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the maple cereal line is only one of Grain Day Cereals' breakfast cereals, only S740,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the p line is discontinued. The remainder of the fixed costs will still be incurred by Grain Day Cereals. If the company decides to discontinue the product line, what will happen to the roduct company's operating income? Should Grain Day Cereals discontinue the product line? Begin by preparing a contribution margin income statement for the maple cereal product line. (Use a minus sign or parentheses to enter a loss.) Sales revenue 7,450,000 5,050,000 Less: Variable expenses Contribution margin 2,400,000 3,100,000 Less: Fbed expenses 0,000 Operating income (loss) Prepare an incremental analysis to show how the discontinued maple cereal product line will affect Grain Day's operating income. (Enter a "0" in an input box if there is no expected change as a result of discontinuing ma cereal.) incremental Analysis for Discontinuation Decision Data Table Contribution margin lost ifmaple cereal is discontinued Less: Fixed cost savings if maple cereal is discontinued Operating income if maple cereal is discontinued Sales reven 7,450,000 6,550,000 Less: Cost of goods sold Gross profit 900,000 600,000 Less: Operating expenses 700,000 Operating income (oss) Choose from any list or enter any number in the input fields and then click Check Answer. Print Check Answer Clear All remaining