All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Total Cat Food Dog Food Sales revenue $415,000 $330,000 $85,000 Variable expenses $61,000 $21,000 $40,000 Contribution margin $354,000 $309,000 $45,000 Fixed expenses $101,000 $49,000 $52,000 Operating income (loss) $253,000 $260,000 $ (7,000) If $13,000 of fixed costs will be eliminated by discontinuing the Dog food line, how will operating income be affected?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Residual income can be defined as: Multiple Choice: O Income remaining after dividends are paid out. O Operating earnings minus return on investment. O Operating earnings plus a minimum acceptable return times average invested capital.
Answers (1)
Emery Mining Inc. recently reported $167,500 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.
Answers (1)
According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in
Answers (1)
If the firms in an oligopolistic industry can establish an effective cartel, the resulting output and price will approximate those of
Answers (1)
A leverage effect will occur if: a. fixed operating costs are greater than zero or if interest expense is less than zero b. fixed operating costs are greater than zero or if interest expense is greater than zero c.
Answers (1)
New Questions in Business
A three-line-to-eight line decoder has inputs cba where the a input is the lsb (least significant bit). the output and gates are labeled q0 through q7. one would normally expect the output of and gate q4 to be active when the inputs are:
Answers (1)
In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults.
Answers (1)
A company can choose to use FIFO inventory costing methods for the financial statement and can elect to use either LIFO or FIFO on the tax return, however if you use LIFO for books then you must use LIFO on the tax return A. True. B. False.
Answers (1)
Which Act outlines regulations to control smoke and other forms of pollution from various sources, whether stationary or in motion?
Answers (1)
Which of the following is a difference between common stock and bonds? A) Bondholders have a voice in management; common stockholders do not. B) Bondholders have a senior claim on assets and income relative to stockholders.
Answers (1)