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DM Corporation Has Provided You with the Following Budgeted Income

question 159

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DM Corporation has provided you with the following budgeted income statement for one of their products: DM Corporation has provided you with the following budgeted income statement for one of their products:   DM has just encountered environmental problems with the product and will be forced to drop the product line altogether.They will be able to eliminate 75% of the fixed expenses.What will be the impact on operating income of the company? A) Operating income will decrease by $195,000. B) Operating income will decrease by $45,000. C) Operating income will increase by $240,000. D) Operating income will increase by $55,000. DM has just encountered environmental problems with the product and will be forced to drop the product line altogether.They will be able to eliminate 75% of the fixed expenses.What will be the impact on operating income of the company?


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