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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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​ ________.

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
(550,000)
$480,000
(162,000)
Batting Helmets
$700,000
(250,000)
Football Helmets
Sales revenue
$330,000
(300,000)
$30,000
Variable costs
Contribution margin
$450,000
Fixed costs
(70,000)
(92,000)
S(62,000)
Operating income (loss)
$318,000
$380,000
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
B. $450,000
OC. $738,000
O D. $162,000
Transcribed Image Text: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 (550,000) $480,000 (162,000) Batting Helmets $700,000 (250,000) Football Helmets Sales revenue $330,000 (300,000) $30,000 Variable costs Contribution margin $450,000 Fixed costs (70,000) (92,000) S(62,000) Operating income (loss) $318,000 $380,000 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 B. $450,000 OC. $738,000 O D. $162,000
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