Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement for Germany Best Appliances is divided by its two product lines, Toasters and Microwaves as follows: Toaster Microwave Total Sales revenue $640,000
The income statement for Germany Best Appliances is divided by its two product lines, Toasters and Microwaves as follows: Toaster Microwave Total Sales revenue $640,000 $255,000 $895,000 Variable expenses $480,000 $210,000 $690,000 Contribution margin $160,000 $45,000 $205,000 Fixed expenses $80,000 $80,000 $160.000 Operating income loss) $80,000 $35,000 $45.000 If Germany Best Appliances can eliminate fixed costs of 537.000 by discontinuing the Microwave then decontinuing it should result in which of the following? Select one: OA Increase in total operating income of 58000 OB. Decrease in total operating income of $45,000 OC Decrease in total operating income of $8000 OD Increase in total operating income of $45.000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started