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 S640,000 $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 S640,000 $255,000 $895,000 Variable expenses $470,000 $210,000 $680,000 Contribution margin $170,000 $45,000 $215,000 Fixed expenses $80,000 $80,000 $160,000 Operating income (loss) $90,000 -$35,000 $55,000 If fixed costs remain unchanged and Germain Appliances discontinues the Microwave line, how will operating income change? Will increase by $45,000 Will decrease by $160,000 Will decrease by $45,000 Will increase by $160,000

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

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

5th Edition

ISBN: 1618532324, 9781618532329

More Books

Students also viewed these Accounting questions

Question

develop your skills of project planning.

Answered: 1 week ago

Question

evaluate different research strategies;

Answered: 1 week ago