Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Toaster Microwave Total Sales revenue 5650,000 $255,000

image text in transcribed
The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Toaster Microwave Total Sales revenue 5650,000 $255,000 $905,000 Variable expenses $480,000 $210,000 $690,000 Contribution margin $170,000 $45,000 $215,000 Fixed expenses $100,000 $100,000 $200,000 Operating Income (loss) $70,000 $(55.000) $15,000 If Germain Appliances can eliminate fixed costs of $34.000 by discontinuing the Microwave line, then discontinuing it should result in O A. Decrease in total operating income of $15,000 OB. Increase in total operating income of $11,000 OC. Decrease in total operating income of $11,000 OD. Increase in total operating income of $15,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The UCAS Guide To Getting Into Economics Finance And Accountancy At University

Authors: Ucas, Targetjobs.Co.UK

1st Edition

9781908077172

More Books

Students also viewed these Accounting questions

Question

4. How do you ask for specific action in a courteous manner?

Answered: 1 week ago

Question

Effective Delivery Effective

Answered: 1 week ago