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The Income Statement for Germain Appliances Is Divided by Its

Question 197

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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