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Kellogg makes several types of cereals including Bran, Wheaties and Rice. The Company's financial data for the past year follows: Wheaties Rice Bran Revenue 500,000

Kellogg makes several types of cereals including Bran, Wheaties and Rice. The Company's financial data for the past year follows:

Wheaties Rice Bran

Revenue 500,000 450,000 250,000

Variable Cost 100,000 90,000 150,000

Contribution Margin 400,000 360,000 100,000

Fixed Costs 200,000 210,000 200,000

Operating Income (OI) 200,000 150,000 (100,000)

The CEO is concerned with the losses being incurred by Bran Cereal and has asked to you the product manager to consider discontinuing the Bran Cereal product line. You have determined that if Bran cereal is discontinued the fixed cost associated with the Bran Cereal product line would continue over the intermediate term and would be allocated to the remaining product lines. If Kellogg discontinues Bran Cereal what would the impact on the Company's overall OI be? Don't not use dollar signs ($) in your answer but provide comma's where appropriate. If the impact is a negative number use brackets ( ).

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