Head Bucket, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Total $1,030,000 Batting Helmets $700,000 Football Helmets Sales revenue $330,000 (300,000) $30,000 (92,000) S(62,000) (550,000) $480,000 (250,000) $450,000 (70,000) $380,000 Variable costs Contribution margin Fixed costs (162,000) $318,000 Operating income (loss) Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be A. $380,000 O B. $450,000 O C. $738,000 O D. $162,000
Head Bucket, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Total $1,030,000 Batting Helmets $700,000 Football Helmets Sales revenue $330,000 (300,000) $30,000 (92,000) S(62,000) (550,000) $480,000 (250,000) $450,000 (70,000) $380,000 Variable costs Contribution margin Fixed costs (162,000) $318,000 Operating income (loss) Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be A. $380,000 O B. $450,000 O C. $738,000 O D. $162,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Head Bucket, Inc. has two product lines—batting helmets and football helmets. The income statement data for the most recent year is as follows in the chart.
Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be ________.
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