Top Posters
Since Sunday
L
4
d
4
3
k
3
k
3
j
3
k
3
b
3
f
3
b
3
d
3
h
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Deprecated Deprecated
wrote...
Go to Answer
Posts: 2784
Rep: 104 0
7 years ago
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
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
Read 286 times
4 Replies
Replies
Answer verified by a subject expert
Mrgo-breedMrgo-breed
wrote...
#1
Top Poster
Posts: 2227
Rep: 276 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Deprecated Author
wrote...
#2
7 years ago
Makes perfect sense, thx
wrote...
#3
7 years ago
Happy to help Smiling Face with Open Mouth
wrote...
#4
3 years ago
thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  931 People Browsing
 115 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 582
  
 342
  
 2176
Your Opinion
Which country would you like to visit for its food?
Votes: 261
Previous poll results: Which is the best fuel for late night cramming?