Contribution Margin Income Statement Data for the Most Recent Year

question 242

Multiple Choice

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

• A)Increase $90,000
• B)Increase $246,000
• C)Increase $168,000
• D)Decrease $90,000

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