Suppose Quacker is considering discontinuing its fruity rings product line. Assume that during the past year, the fruity rings' product line income state (Click the icon to view the income statement data.) (Click the icon for additional information.) If the company decides to discontinue the product line, what will happen to the company's operating income? Should Quacker discontinue the fruity ri Begin by preparing a contribution margin in Sales revenue Less: Contribution margin Less: Operating income (loss) Get more help. Data table A 1 Sales revenue 2 Less: Cost of goods sold 3 Gross profit 4 Less: Operating expenses 5 Operating income (loss) Print $ B 5,300,000 6,200,000 (900,000) 1,550,000 $ (2,450,000) Done -X ses to enter a loss.)

Suppose Quacker is considening discontinuing its fruity rings product line. Assume that during the past year, the fruity rings' product line income state (Click the icon to view the income statement data) (i) (Click the icon for additional information) If the company decides to discontinue the product line, what will happen to the company's operating income? Should Quacker discontinue the fruity i Data table Sucbose Quacker is consdering drkcontinung is fruty rings product the Assume that dunng the past year the thusy nings' product line incorne statemest showed the folowing Clack the icoo in viow the ncome tatoment data) (C. (Clack the icon for addiconal islomation ) More info Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the fruity rings line is just one. of the company's cereal operations, only $760,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company. Suppose Quacker is considening discontinuing its fruity rings product line. Assume that during the past year, the fruity rings' product line income state (Click the icon to view the income statement data) (i) (Click the icon for additional information) If the company decides to discontinue the product line, what will happen to the company's operating income? Should Quacker discontinue the fruity i Data table Sucbose Quacker is consdering drkcontinung is fruty rings product the Assume that dunng the past year the thusy nings' product line incorne statemest showed the folowing Clack the icoo in viow the ncome tatoment data) (C. (Clack the icon for addiconal islomation ) More info Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the fruity rings line is just one. of the company's cereal operations, only $760,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company