Sales revenue $=$$$760,000$

Fixed costs $=$$$130,000$

Variable costs $=$$$560,000$ discontinues the salad bars and does nothing with the freed capacity? no additional fixed costs. What will happen to Kabir's operating income if it replaces the salad bars with olive bars? the salad bars and does nothing with the freed capacity?

Incremental Analysis for Discontinuation Decision

Total

Sales revenue from salad bars

Contribution margin lost if salad bars are discontinued

Operating income lost if salad bars are discontinued