Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement...

Question

Question

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer: B- operating income will increase by $ soooo Here from the question, the total operating income are as Adiows. Battin

Add a comment

Answer 2

Similar Homework Help Questions

Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement...

Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Not yet answered Marked out of 2.00 P Flag question Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Total Batting Helmets Football Helmets $1,050,000 $700,000 $350,000 (430,000) (150,000) (280,000 $620,000 $550,000 $70,000 (180.000) 190.000 190.000 $440,000 $460,000 $120,000 If $50,000 of fixed costs will be eliminated by dropping the football helmets line,...
Please answer with clear work Top Hats Inc. has two product lines -baseball helmets and football...

Please answer with clear work Top Hats Inc. has two product lines -baseball helmets and football helmets, The income statement data for this year is Baseball Helmets $500,000 (250,000) $250,000 (90,000) Football Helmets Total $350,000 (280,000) $70,000 (90,000) $(20,000) $850,000 (530,000) $320,000 (180,000) $140,000 Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating income (loss)$160,000 6.The firm might drop the football helmets line, which would reduce the costs by $50,000.How would the firm's operating income be affected if football helmets...
The income statement for Lovely Locks is divided by its two product lines, Curling Irons and...

The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: Curling Irons Straighteners Total Sales revenue $650,000 $260,000 $910,000 Variable expenses $490,000 $210,000 $700,000 Contribution margin $160,000 $50,000 $210,000 Fixed expenses $90,000 $90,000 $180,000 Operating income (loss) $70,000 -$40,000 $30,000 If Lovely Locks can eliminate fixed costs of $33,000 and increase the sale of Curling Irons by 6500 units at a selling price of $33 per unit and a contribution...

Momentum Rollerblades has three product lines—D, E, and F. The following information is available: D...

Momentum Rollerblades has three product lines—D, E, and F. The following information is available: D E F Sales revenue $70,000 $40,000 $31,000 Variable costs (20,000) (5000) (11,000) Contribution margin $50,000 $35,000 $20,000 Fixed costs (10,000) (15,000) (24,000) Operating income (loss) $40,000 $20,000 $(4000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $22,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on...
Powder, Inc. has two product lines snow skis and water skis. The income statement data for...

Powder, Inc. has two product lines snow skis and water skis. The income statement data for the most recent year is as follows: Total Snow skis Water skis Sales revenue $980,000 $650,000 $330,000 Variable costs (425,000) (175,000) (250,000) Contribution margin $555,000 $475,000 $80,000 Fixed costs (185,000) (80,000) (105,000) Operating income (loss) $370,000 $395,000 $(25,000) Question: What is the effect of dropping the water skis line on the operating income of the company assuming no changes in fixed costs? Operating income...
The income statement for Eideldown, Inc. is divided by its two product lines, blankets and pillows,...

The income statement for Eideldown, Inc. is divided by its two product lines, blankets and pillows, as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Blankets $700,000 250,000 450,000 85,000 $365,000 Pillows $600,000 330,000 270,000 85,000 $185,000 Total $1,300,000 580,000 720,000 170,000 $550,000 If total fixed costs remain unchanged and Eideldown, Inc. drops the pillows line, operating income will decrease by $270,000. O O True False

Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales...

Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales revenue $70,000 $60,000 $30,000 Variable costs (40,000) (115.000) (10.000) Contribution margin $30,000 $45,000 $20,000 Fixed costs (15.000) (5.000) (23.000) Operating income (loss) $15,000 $40,000 $(3,000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $21,000 of total fixed costs could be eliminated by O A. Operating income will decrease by $1,000 O B. Operating income...
31 Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for...

31 Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490,000 365,000 125,000 80,000 $45,000 Luxury $360,000 245,000 115,000 40,000 $75,000 Sporty $130,000 120,000 10,000 40,000 $(30,000) If $20,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? O A. Decrease $30,000 O B. Increase $15,000 OC. Increase $10,000...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the...

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Total Luxury Sporty Sales revenue $530,000 $400,000 $130,000 Variable expenses 345,000 225,000 120,000 Contribution margin 185,000 175,000 10,000 Fixed expenses 79.000 39.500 39,500 Operating income (loss) $106,000 $135,500 $(29,500) 1f $22,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? OA. Increase $12.000 O B. Decrease $32,000 OC. Increase 5224000 OD. Increase...

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year fo...

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $500,000 395,000 105,000 76,000 $29,000 Hiking $360,000 275,000 85,000 38,000 $47.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? O A. Increase $65,000 OB. Increase $36,000 OC. Increase $5,000 OD. Decrease...

Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement...

Homework Answers