The income statement for Germain Appliances is divided by its two product lines,Toasters and Microwaves,as follows:
If fixed costs remain unchanged and Germain Appliances discontinues the Microwave line,how will operating income change?
A) Will decrease by $150,000
B) Will increase by $45,000
C) Will decrease by $45,000
D) Will increase by $150,000
Correct Answer:
Verified
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