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The Income Statement for Germain Appliances Is Divided by Its

Question 174

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 fixed costs remain unchanged and Germain Appliances discontinues the Microwave line, how will operating income change? A) Will decrease by $150,000 B) Will increase by $45,000 C) Will decrease by $45,000 D) Will increase by $150,000 If fixed costs remain unchanged and Germain Appliances discontinues the Microwave line, how will operating income change?


A) Will decrease by $150,000
B) Will increase by $45,000
C) Will decrease by $45,000
D) Will increase by $150,000

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