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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 Cat
Pet Food Inc. has two product lines. Cat food and Dog food. Contribution margin income statement data for the most recent year follow Cat Food Sales revenue Variable expenses Contribution margin Fed expenses Operating income (loss) Total $305,000 Dog Food $310,000 $85,000 $65,000 $25,000 $40.000 $330,000 $285,000 $45.000 $102,000 $50,000 $52.000 $228,000 $235,000 $7,000 Assuming the Dog food is discontinued, total feed costs remain unchanged, and the space formerly used to produce the the is OA. Increase $10.000 OB. Inose $200,000 OC. Decrease $19,000 Ob. Increase $437,000 1 for $21,000 year, how will operating income be affected?
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