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Suppose Creamy Cat is considering discontinuing its bran flakes product line. Assume that during the past year, the bran flakes' product line income statement
Suppose Creamy Cat is considering discontinuing its bran flakes product line. Assume that during the past year, the bran flakes' product line income statement showed the following: Click the icon for additional information.) (Click the icon to view the income statement data.) if the company decides to discontinue the product line, what will happen to the company's operating income? Should Creamy Oat discontinue the bran flakes product line? Begin by preparing a contribution margin income statement for the bran flakes' product line. (Use a minus sign or parentheses to enter a loss.) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) 7,700,000 100,000
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