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
Correct Answer:
Verified
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