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

Question 165

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: All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Assuming total fixed costs remain unchanged, how would discontinuing the Dog food line affect operating income? A) Increase in total operating income of $208,000 B) Increase in total operating income of $7,000 C) Decrease in total operating income of $45,000 D) Decrease in total operating income of $461,000 Assuming total fixed costs remain unchanged, how would discontinuing the Dog food line affect operating income?


A) Increase in total operating income of $208,000
B) Increase in total operating income of $7,000
C) Decrease in total operating income of $45,000
D) Decrease in total operating income of $461,000

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