All About Animals Has Two Product Lines: Cat Food and Dog

question 168

Multiple Choice

All About Animals has two product lines: Cat food and Dog food. 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 $26,000 per year, how will operating income be affected?

• A)Increase $254,000
• B)Increase $527,000
• C)Decrease $19,000
• D)Increase $19,000

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Definitions:

Medical Asepsis

The practices used to reduce and prevent the spread of microorganisms and infection, such as handwashing and sanitization.

Sterile Field

An area created to prevent infection during medical procedures by using sterilized equipment and maintaining a clean environment.

Bacteriostasis

The inhibition of the growth and multiplication of bacteria without killing them.

Latex Allergy

An allergic reaction to certain proteins found in natural rubber latex, often leading to symptoms ranging from skin irritation to anaphylaxis.