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: Sales revenue Variable expenses Contribution margin Fixed

image text in transcribed

The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Toaster $620,000 $460,000 $160,000 $75,000 $85,000 Microwave $255,000 $210,000 $45,000 $75,000 $(30,000) Total $875,000 $670,000 $205,000 $150,000 $55,000 If fixed costs remain unchanged and Germain Appliances discontinues the Microwave line, how will operating income change? O A. Will decrease by $150,000 OB. Will increase by $150,000 O C. Will increase by $45,000 OD. Will decrease by $45,000

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

Investment Grade Energy Audit Making Smart Energy Choices

Authors: Shirley J. Hansen, James W. Brown

1st Edition

0824709284, 978-0824709280

More Books

Students also viewed these Accounting questions

Question

Type a statement that outputs: Hello

Answered: 1 week ago