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Pet Food Inc. has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Sales revenue

Pet Food Inc. has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin: Fixed expenses Operating income (loss) Total $385,000 Cat Food $300,000 Dog Food $85,000 $61,000 $21,000 $40,000 $324,000 $279,000 $45,000 $99,000 $47,000 $52,000 $225,000 $232,000 $(7,000) Assuming the Dog food is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $23,000 per year, how will operating income be affected? A. Decrease $22,000 OB. Increase $428,000 OC. Increase $203,000 OD. Increase $22,000 D

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