td data for the salad bar operations Assume Kostere grocery store as deciding whether to eliminate the-unlad bar section of its stores. The product line income statement shows the following quarterly Sales revenue 5810,000 Fixed costs = 5115,000 Vanable costs=5635 000 1. Only $5.000 of fixed costs can be eliminated the salad bar is eliminated The remaining 5110,000 of foced costs are unavoidable. What will happen to Kerser's operating income if il discontinues the salad bars and does nothing with the freed capacity? 2. Management is thining about replacing the salad bar section of the stores with a specialty olive bar, which is projected to bring in $200,000 of contribution margin each quartet while in cutting no additional fixed costs. What will happen to Keiser's operating income if it replaces the salad bars with one bars? 1. Only $5,000 of foved costs can be eliminated tho salad bar is eliminated. The remaining 5110,000 of foxed costs are unavoidable. What will happen to Keiser's operating income il discontinues the salad bars and does nothing with the freed capacity? Incremental Analysis for Discontinuation Decision Total Sales revenue from salad bars Contribution margin fost if salad bars are discontinued Operating Income lotif salad bars are discontinued