The Income Statement for Germain Appliances Is Divided by Its

Multiple Choice

The income statement for Germain Appliances is divided by its two product lines,Toasters and Microwaves,as follows:

If Germain Appliances can eliminate fixed costs of $32,000 by discontinuing the Microwave line,then discontinuing it should result in which of the following?

A) Increase in total operating income of $45,000
B) Increase in total operating income of $13,000
C) Decrease in total operating income of $13,000
D) Decrease in total operating income of $45,000