Final Exam (Fall 2020)- /6>Question 39 of 50View PoliciesCurrent Attempt in ProgressPharoahlndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses forseveral years, and management is considering dropping the line. Recent income statements have been very similar to the followinginformation which was prepared for the most recent year:HomeRetailIndustrialTotal$550600$320600$830600$1701800SalesVariable costs3578002183006815001257600Contribution192800102300149100444200marginFixed costs125600130600115600371800Operating income$67200$(28300)$33500$72400Of the fixed costs, $316800 of it is common costs that have been allocated equally to each product line. What will total operatingincome be if Pharoah drops the retail line?O $77300O $(4900)O $100700O $25100Save for LaterAttempts: 0 of 1 usedSubmit AnswerMacBook Airesc888F4F2F3F5F6F7F8#2$&*346.8.WYDFGHI!!

Income statement: Under this Statement showing the company’s performance over a period of time by subtracting expenses from revenue to obtain the net income. Sometimes it is known as a profit & loss statement or earning report.Pharoah Industries Income statement Particular Working note Home Industrial Total Sales 550,600 830,600 1,381,200 Less: Variable costs (357,800) (681,500) (1,039,300) Contribution margin 192,800 149,100 341,900 Less: Fixed costs 1 (158,400) (158,400) (316,800) Operating Income 34,400 (9,300) 25,1001) Fixed costs Common fixed costs = $316,800 Fixed cost allocated to home and industrial = $316,800÷2 = $158,400If Pharoah drop the retail line then total operating income is $25,100

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Current Attempt Pharoahlndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year: Home Retail Industrial Total $550600 $320600 $830600 $1701800 Sales 357800 218300 681500 1257600 Variable costs Contribution 192800 102300 149100 444200 margin Fixed costs 125600 130600 115600 371800 Operating income $67200 $(28300) $33500 $72400 Of the fixed costs, $316800 of it is common costs that have been allocated equally to each product line. What will total operating income be if Pharoah drops the retail line? $77300 $(4900) $100700 $25100