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Suppose Crispy Pop is considering discontinuing its special oats product line. Assume that during the past year, the special oats' product line income statement showed
Suppose Crispy Pop is considering discontinuing its special oats product line. Assume that during the past year, the special oats' product line income statement showed the following:
View the income statement data
View the additional information.
If the company decides ta discontinue the product line, what will happen to the company's operating income? Should Crispy Pop discontinue the special oats product line?
Begin by preparing a contribution margin income statement for the special oats' product line. Use a minus sign or parentheses to enter a loss.
tableSales revenue,$
Income statement data
Sales revenu
$
te company
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Operating income loss
e Assume
tableSales revenu
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