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The income statement for Wake Me Up Appliances is divided by its two product lines, Toasters and Coffee Machine, as follows: Coffee Machine $255,000 11
The income statement for Wake Me Up Appliances is divided by its two product lines, Toasters and Coffee Machine, as follows: Coffee Machine $255,000 11 $210,000 $45,000 $75,000 ($30,000) Sales revenue Variable expenses Contribution margin Toaster $630,000 $460,000 $170,000 O A. Increase in total operating income of $13,000 O B. Decrease in total operating income of $65,000 OC. Decrease in total operating income of $13,000 O D. Increase in total operating income of $65,000 Fixed expenses Operating income (loss) $95,000 If Wake Me Up Appliances can eliminate fixed costs of $32,000 by discontinuing the Coffee Machine line, then discontinuing it should result in which of the following? Total $885,000 $670,000 $215,000 $150,000 $65,000 $75,000
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