q7

Suppose Quacker is considering discontinuing its malow charms product line. Assume that during the post yeat, the mallow charms' product line income staternent showed the following Click the icon to viow the income statement data) (i) (Click the icon for additional information.) If the compary decides to discontinue the product ine, what will happen to the companys coerating income? Should Guicker discontinue the mallow chams product line? e statement data.) (i) (Cick the icon for additional information.) e the product line, what wili happen to the company's operating income? Shou Data table noome statement data.) 1 (Cick the icon for addisonat information.) ontinue the product line, what will happen to the company's operating income? Should Que More info Foxed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are ficed: Since the mallow charms line is just one of the company's cereal operations, only $770,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fired costs will stal be incurred by the company