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 $33,000
B) Increase in total operating income of $159,000
C) Decrease in total operating income of $45,000
D) Decrease in total operating income of $111,000
Correct Answer:
Verified
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