All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow:
If $12,000 of fixed costs will be eliminated by discontinuing the Dog food line, how will operating income be affected?
A) Increase $123,000
B) Increase $45,000
C) Decrease $33,000
D) Decrease $57,000
Correct Answer:
Verified
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