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Title: Faros Hats, Inc. has two product linesbatting helmets and football helmets. The income statement ... Post by: lanachase on Jul 27, 2018 Faros Hats, Inc. has two product linesbatting helmets and football helmets. The income statement data for the most recent year is as follows:
TotalBatting HelmetsFootball Helmets Sales revenue$1,050,000$700,000$350,000 Variable costs(530,000)(250,000)(280,000) Contribution margin$520,000$450,000$70,000 Fixed costs(200,000)(90,000)(110,000) Operating income (loss)$320,000$360,000$(40,000) What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.) A) Operating income will increase by $40,000. B) Operating income will increase by $90,000. C) Operating income will decrease by $70,000. D) Operating income will decrease by $350,000. Title: Faros Hats, Inc. has two product linesbatting helmets and football helmets. The income statement ... Post by: Jojo2you on Jul 27, 2018 Content hidden
Title: Faros Hats, Inc. has two product linesbatting helmets and football helmets. The income statement ... Post by: lanachase on Jul 27, 2018 Ready for finals now :monkey:
Title: Faros Hats, Inc. has two product linesbatting helmets and football helmets. The income statement ... Post by: Jojo2you on Jul 27, 2018 Good luck my friend!
Title: Re: Faros Hats, Inc. has two product linesbatting helmets and football helmets. The income statement ... Post by: timmel on Sep 17, 2018 thank you
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