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Pet Food Inc. has two product lines: Cat food and Dog food. Contribution margin income statement data for the most re Sales revenue Variable expenses
Pet Food Inc. has two product lines: Cat food and Dog food. Contribution margin income statement data for the most re Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $435,000 Cat Food Dog Food $350,000 $85,000 $63,000 $23,000 $40,000 $372,000 $327,000 $45,000 $99,000 $47,000 $52,000 $273,000 $280,000 $(7,000) Assuming total fixed costs remain unchanged, how would discontinuing the Dog food line affect operating income? OA. Increase in total operating income of $7,000 B. Decrease in total operating income of $501,000 C. Decrease in total operating income of $45,000 D. Increase in total operating income of $228,000 d. Contribution margin income statement data for the most recent year follow: Cat Food $350,000 Dog Food $85,000 $23,000 $40,000 $327,000 $45,000 $47,000 $52,000 $280,000 $(7,000) d discontinuing the Dog food line affect operating income
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