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Other Fields Homework Help Accounting Topic started by: Deprecated on Sep 21, 2016



Title: Rocca Hats, Inc. has two product lines - batting helmets and football helmets. The income statement ...
Post by: Deprecated on Sep 21, 2016
Rocca Hats, Inc. has two product lines - batting helmets and football helmets. The income statement data for the most recent year is as follows:

   Total   Batting Helmets   Football Helmets
Sales revenue   $940,000   $600,000   $340,000
Variable costs   (430,000)   (150,000)   (280,000)
Contribution margin   $510,000   $450,000   $60,000
Fixed costs   (180,000)   (90,000)   (90,000)
Operating income (loss)   $330,000   $360,000   $(30,000)

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) $720,000
B) $360,000
C) $180,000
D) $450,000


Title: Re: Rocca Hats, Inc. has two product lines - batting helmets and football helmets. The income ...
Post by: Mrgo-breed on Sep 21, 2016
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Title: Re: Rocca Hats, Inc. has two product lines - batting helmets and football helmets. The income statement ...
Post by: Deprecated on Oct 12, 2016
Makes perfect sense, thx


Title: Re: Rocca Hats, Inc. has two product lines - batting helmets and football helmets. The income statement ...
Post by: Mrgo-breed on Oct 16, 2016
Happy to help :D


Title: Re: Rocca Hats, Inc. has two product lines - batting helmets and football helmets. The income ...
Post by: ben1011 on Dec 8, 2020
thank you