Variable costs $ discontinues the salad bars and does nothing with the freed capacity? no additional fixed costs. What will happen to Kabir's operating income if it replaces the salad bars with olive bars? the salad bars and does nothing with the freed capacity?
Incremental Analysis for Discontinuation Decision
Total
Sales revenue from salad bars
Contribution margin lost if salad bars are discontinued
Operating income lost if salad bars are discontinued
Answer & Explanation
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