Contribution Margin Income Statement Data for the Most Recent Year

question 168

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

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