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Thank you! All About Animals has two product lines: Cat food and Dog food Contribution margin income statement data for the most recent year follow
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All About Animals has two product lines: Cat food and Dog food Contribution margin income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Foed expenses Operating income (loss)$92,000 $100,000 S(8,000) Total Cat Food Dog Food 385,000 $300,000 $85,000 191,000 $150,000 $41,000 $194,000 $150,000 S44,000 $102,000 $50,000 $52,000 Assuming the Dog food line is discontinued, total foced costs remain unchanged, and the space formerty used to produce the Dog food line is used to double the production of Cat food, how will operating income be affected? O A. Increase $150,000 O B. Increase $106,000 O C. Increase $300,000 O D. Decrease $106,000Step by Step Solution
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