Question
Total Cat food Dog food Sales revenue $385,000 $300,000 $85,000 Variable expenses $205,000 $165,000 $40,000 contribution margin $180,000 $135,000 $45,000 fixed expeses $102,000 $50,000 $52,000
Total Cat food Dog food
Sales revenue $385,000 $300,000 $85,000
Variable expenses $205,000 $165,000 $40,000
contribution margin $180,000 $135,000 $45,000
fixed expeses $102,000 $50,000 $52,000
operating income (loss) $78,000 $85,000 $(7,000)
Assuming total fixed cost remain unchanged, how would discontinuing the Dog food line affect operating income?
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Financial Accounting
Authors: Arne E. Jorgensen
1st Edition
8759340886, 9788759340882
