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Suppose Grainy Osy is considering discontinuing its special oats product line Assume that dufing the past year, the special oals' product line income statement showed

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Suppose Grainy Osy is considering discontinuing its special oats product line Assume that dufing the past year, the special oals' product line income statement showed the following: (Click the icon to view the inceme statement data.) (3) (Click the icon for additonat informution.) If the compary decides to ditcontinue the product line, what will happen to the compary's operating income? Should Grainy Day discontinue the special oats product line? happen to the company's operating income? Should Grainy Day discontinue the speclal oats product lin Data table More info Fixed manulacturing overhead costs accouint for 40% of the coat of poods, while only 30% of the operating expenses are fixed. Since the spocial oats line is just one of the company's cereat aperations, only $755,000 of direct fxed costs (the majority of which is advertising) wil be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company

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