E8-24A (similar to) Suppose Smiley O is considering discontinuing its mallow charms product line. Assume that during the past year, the mallow charms' product line income statement showed the following (click the icon to view the income statement data ) ( If the company decides to discontinue the product line, what will happen to the company's operating income? Should Smiley O discontinue the mallow charms product line? (Click the icon for additional information Begin by preparing a contribution margin income statement for the mallow charms product line. (Use a minus sign or parentheses to enter a loss.) Sales revenue Less Cost of Contribution margin Less: Operating expenses Operating income (loss) S 7,500,000 6150000) 1350000 1500000 (150,000) More Info Fixed manufacturing overhead costs account for 40% of the cost of goods while only 30% of the operating expenses are fixed. Since the mallow charms line is just one of the company's cereal operations, only $T75,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company PrintDone XE8-24A (similar to) Suppose Smiley O is considering discontinuing its mallow charms product line. Assume that during the past year, the mallow charms product line income statement showed the following: (click the icon to view the income statement data ) (Click the icon for additional information If the company decides to discontinue the product line, what will happen to the company's operating income? Should Smiley O discontinue the mallow charms product line? Begin by preparing a contribution margin income statement for the mallow charms p Sales revenue Less: Cost of goods sold Contribution margin Less: Operating expenses Operating income (loss) Data Table S 7,500,000 6150000 1350000 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Operating income (loss) $ 7,500,000 6,150,000 1,350,000 1,500,000 $150,000) S (150,0 PrintDone Choose from any list or enter any number in the input fields and then click Check