part 2

Suppose Wheotum it contisering discortinuing las malow charms prosuct line. Astume thy IIII (Click the icon to view the inoonve statement data) (B) (Cick the icon for asdsona Foed manutactaing cvertead costs account for 4C5 of the osat at goode, while IN the company decides to discontinue the product ine, what wit hapses to the companys of only 30% of the operaing experses are fousd since the malos chams line is just cne of the company's cereal opentions, ony 3700,600 of dinect fxed ccats ithe majorily of which it advertising) will be eliminated if the product ine is dsconfnued. The remainder of the frod coats wit stir be ineurted by the comperye. Begin ty pregaring a obotrbution margin inoome statement for the malow charms' predust retut of discortiinsing makow charmu) Data table 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 $780,000 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. Data table Prepare an incremental analysis to show how the ditcontinued malow chams product line will affect Wheatamis operating income. (Entec a "O"' in an input field if thare is no expected change is at result of discontinieng malow churms)