Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. all about animals has two product lines: cat food

All About Animals has two product lines: Cat food and Dog food. Contribution margin income...

70.2K

Verified Solution

Question

Accounting

image

All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent vear follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Cat Food Dog Food $85,000 $40,000 $45,000 $52,000 $265,000$272,000S(7,000) $425.000 $340,000 $23,000 $362,000 $317,000 $45,000 $63,000 $97,000 Assuming the Dog food is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $23,000 per year, how will operating income be affected? A. Increase $22,000 B. Increase $243,000 O C. Decrease $22,000 D. Increase $508,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Create a program using Matlab that can solve Three Dimensional Space; Vectors, Partial Derivatives or any...

Mechanical Engineering
Q

What is function of Ctrl C and Ctrl V shortcut keys O Cut paste O...

Biology
Q

Suppose that during a recession the government borrows money to provide free wireless Internet access...

Basic Math
Q

In f(x) = cos k, if k is negative:a) the function is reflected about both...

Algebra
Q

17 Solve the system by the method of substitution 5x y 5 5x 3y 15...

Algebra
Q

Held-to-maturity securities are reported at their: fair value. net realizable value. historical...

Accounting
Q

The following transactions occurred in April at Steves Cabinets, a custom cabinet firm. ...

Accounting
Q

Mann Corp.s liability account balances at June 30, Year 2, included a 10% note payable...

Accounting
Q

Company has capacity to tires. Taliadega presently produces and sells 143,000 tires for the North...

Accounting
Q

On June 1, Bonita Company borrows $106,500 from First Bank on a 6-month, $106,500,8% note....

Accounting
Q

Kimberly Young runs an outdoor adventure company called Crane Ltd. Her busiest months are June...

Accounting
Q

Don Financial buys and sells securities which it classifies as available-for-sale. On December 31, 2021,...

Accounting