ll About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: ​ Total Cat Food Dog Food Sales revenue $435,000 $350,000 $85,000 Variable expenses $61,000 $21,000 $40,000 Contribution margin $374,000 $329,000 $45,000 Fixed expenses $101,000 $49,000 $52,000 Operating income (loss) $273,000 $280,000 $(7,000)Assuming the Dog food is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $26,000 per year, how will operating income be affected?   Question 32 options:   Increase $254,000   Increase $527,000   Decrease $19,000   Increase $19,000

Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:     Amount Percent of Sales Sales $ 84,000 100% Variable expenses 33,600 40% Contribution margin 50,400 60% Fixed expenses 40,320   Net operating income $ 10,080     Required: 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of an 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming an 8% increase in unit sales. Required 1 Degree of operating leverage   Required 2 & 3:see doc attached

Contribution Margin and Contribution Margin Ratio For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Sales for all restaurants Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $100,560 69,600 39,900 40,200 17,460 $291,000 (267,720) $23,280 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. % c. How much would operating income increase if the stores sales increased by $5,800 for the coming year, with no change in the contribution margin

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:     Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 923,000 $ 266,000 $ 405,000 $ 252,000 Variable manufacturing and selling expenses 473,000 111,000 205,000 157,000 Contribution margin 450,000 155,000 200,000 95,000 Fixed expenses:         Advertising, traceable 69,200 8,400 40,600 20,200 Depreciation of special equipment 43,400 20,700 7,200 15,500 Salaries of product-line managers 114,600 40,600 38,100 35,900 Allocated common fixed expenses* 184,600 53,200 81,000 50,400 Total fixed expenses 411,800 122,900 166,900 122,000 Net operating income (loss) $ 38,200 $ 32,100 $ 33,100 $ (27,000)   *Allocated on the basis of sales dollars.   Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued.…