Contribution Margin Income Statement Data for the Most Recent Year

question 183

Multiple Choice

Contribution margin income statement data for the most recent year follow: Assuming the Dog food is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $25,000 per year, how will operating income be affected?

• A)Increase $58,000
• B)Increase $184,000
• C)Decrease $20,000
• D)Increase $20,000

---

Definitions:

Business Location

The physical or virtual place where a company is situated or conducts its operations, which can significantly impact its success.

Thousands Of

A term indicating a large, unspecified number, usually implying a magnitude of at least several thousand.

Small Businesses

Companies with limited revenue, employees, or resources, typically defined by government criteria for size standards.

Tens Of

An expression suggesting an approximate quantity or range, often used in the context of counting or estimating.