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Lorico [155]
3 years ago
13

All About Animals has two product​ lines: Cat food and Dog food. Contribution margin income statement data for the most recent y

ear​ 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?
Business
1 answer:
Citrus2011 [14]3 years ago
4 0

Answer:

The operating income is decreased by $6,000

Explanation:

The effect on operating income is shown below:

= Operating income for cat food - fixed costs of dog food line

= $260,000 - $13,000

= $247,000

And the total operating income is $253,000

So, the effect would be equal to

= Cat food line operating income - total operating income

= $247,000 - $253,000

= - $6,000

The minus amount reflect the decrease in the net income

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Answer:

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Regularly every official in the area of ​​tax law is a kind of legal autarchy that knows spontaneously and naturally the subject under his responsibility. Thus, in each general rule or in each resolution or decree, concepts that are clear in the Tax Code are redefined, but redefined to give it another meaning in accordance with the notions just arrived at the Administration. Arranged with the pragmatic and practical statute that on the road the load is rigged.

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