Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement for Shock Appliances is divided by its two product lines, Toasters and Mini Ovens, as follows: Toaster Mini Oven Total Sales revenue
The income statement for Shock Appliances is divided by its two product lines, Toasters and Mini Ovens, as follows: Toaster Mini Oven Total Sales revenue $650,000 $255,000 $905,000 Variable expenses $470,000 $210,000 $680,000 Contribution margin $180,000 $45,000 $225,000 Fixed expenses $85,000 $85,000 $170,000 Operating income (loss) $95,000 $(40,000) $55,000 If fixed costs remain unchanged and Shock Appliances discontinues the Mini Oven line, how will operating income change? O A. Will increase by $45,000 B. Will increase by $170,000 c. Will decrease by $45,000 OD. Will decrease by $170,000
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