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The Income Statement for Germain Appliances Is Divided by Its

Question 137

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 Germain Appliances can eliminate fixed costs of $32,000 by discontinuing the Microwave line, then discontinuing it should result in which of the following? A) Increase in total operating income of $45,000 B) Increase in total operating income of $13,000 C) Decrease in total operating income of $13,000 D) Decrease in total operating income of $45,000 If Germain Appliances can eliminate fixed costs of $32,000 by discontinuing the Microwave line, then discontinuing it should result in which of the following?


A) Increase in total operating income of $45,000
B) Increase in total operating income of $13,000
C) Decrease in total operating income of $13,000
D) Decrease in total operating income of $45,000

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