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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Final Exam (Fall 2020)
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Question 39 of 50
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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
Variable costs
357800
218300
681500
1257600
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?
O $77300
O $(4900)
O $100700
O $25100
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Transcribed Image Text:Final Exam (Fall 2020) - /6 > Question 39 of 50 View Policies Current Attempt in Progress 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 Variable costs 357800 218300 681500 1257600 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? O $77300 O $(4900) O $100700 O $25100 Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air esc 888 F4 F2 F3 F5 F6 F7 F8 # 2$ & * 3 4 6. 8. W Y D F G H I!!
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