In: Accounting
The income statement for Germain Appliances is divided by its two product? lines, Toasters and? Microwaves, as? follows: Toaster Microwave Total Sales revenue $ 640 comma 000 ?$255,000 $ 895 comma 000 Variable expenses $ 450 comma 000 ?$210,000 $ 660 comma 000 Contribution margin $ 190 comma 000 ?$45,000 $ 235 comma 000 Fixed expenses $ 85 comma 000 $ 85 comma 000 $ 170 comma 000 Operating income? (loss) $ 105 comma 000 $( 40 comma 000 ) $ 65 comma 000 If fixed costs remain unchanged and Germain Appliances discontinues the Microwave? line, how will operating income? change?