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The Income Statement for Germain Appliances Is Divided by Its

Question 152

Multiple Choice

The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: 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 $34,000 and increase the sale of Toasters by 6300 units at a selling price of $30 per unit and a contribution margin of $12 per unit, then discontinuing the Microwaves should result in which of the following? A) Increase in total operating income of $64,600 B) Increase in total operating income of $30,600 C) Decrease in total operating income of $64,600 D) Decrease in total operating income of $30,600 If Germain Appliances can eliminate fixed costs of $34,000 and increase the sale of Toasters by 6300 units at a selling price of $30 per unit and a contribution margin of $12 per unit, then discontinuing the Microwaves should result in which of the following?


A) Increase in total operating income of $64,600
B) Increase in total operating income of $30,600
C) Decrease in total operating income of $64,600
D) Decrease in total operating income of $30,600

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