Pet Pals has two product lines: dog houses & dog toys. Income statement data for the most recent year follows:
Total Dog Houses Dog Toys
Sales $ $ $
Variable Costs $ $ $
Contribution Margin $ $ $
Fixed Costs $ $ $
Operating Income Loss $ $ $
Assuming the Dog Toys line is discontinued, total fixed costs decrease by $ and the space formerly used to produce the line is rented for $ per year, operating income will
by
Your first blank should contain the word "increase" or "decrease" and the second blank should contain the dollar amount.
