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

Question 164

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: If $13,000 of fixed costs will be eliminated by discontinuing the Dog food line, how will operating income be affected? A) Increase $474,000 B) Increase $221,000 C) Decrease $32,000 D) Decrease $56,000 If $13,000 of fixed costs will be eliminated by discontinuing the Dog food line, how will operating income be affected?


A) Increase $474,000
B) Increase $221,000
C) Decrease $32,000
D) Decrease $56,000

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