Please do not give solution in image format thanku Current business segment operations for Jolie, a mass retailer, are presented below:AnswerSalesVariable CostsFixed CostsOperating income (Loss)A $160,000B $220,000C $200,000D $180,000Total$855,000$475,000$220,000$160,000Merchandise Automotive Restaurant$475,000$285,000$100,000$90,000$380,000$190,000$100,000 $20,000$90,000 ($20,000)Management is contemplating the discontinuance of the Restaurant segment because "it is losing money." If this segment is discontinued, $30,000 of its fixedcosts will be eliminated. In addition, Merchandise and Automotive sales will decrease 5% from their current sales levels. What will Jolie's total operating incomebe if the Restaurant segment is discontinued?

Contribution margin = Sales - Variable cost On discontinue of Restaurant segment Fixed cost…

Answered: Management is contemplating the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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