Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:
|
||||||||||||||||||||||||
|
Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $ 30,000 per year, how will operating income be affected? |
A.
Decrease $ 10,000
B.
Increase $ 10,000
C.
Increase $ 60,000
D.
Increase $ 35,000
Homework Answers
| Sales revenue | 360000 |
| Add:- Additional Revenue | 30000 |
| Total Revenue | 390000 |
| Less Variable Exp | -275000 |
| Contribution Margin | 115000 |
| Less Fixed Exp | -80000 |
| New Net Operating Income | 35000 |
| Les:- Original Income | -25000 |
| Increase in Operating Income | 10000 |
Hence, answer is B, Increase by 10000
| Please hit like. Need it very badly. In case of doubt, please comment. Happy to resolve the query. |
Add Answer to:
Boots Plus has two product lines: Hiking boots and Fashion
boots. Income statement data for the...
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...
14 Boots Plus has two product lines: Hiking boots and Fashion boots Income statement data for...
14 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) Totall $500,000 365.000 135,000 79.000 $56.000 Hiking $360,000 245.000 115,000 39.500 $75,500 Fashion $140,000 120.000 20.000 39.500 -$19.500 Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income...
Boots Plus has two product lines Hking boots and Fashion boots Income statement data for the...
Boots Plus has two product lines Hking boots and Fashion boots Income statement data for the most recent year follow Total Hiking Fashion Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (oss) $520 000 405,000 $380,000 $140,000 285.000 120,000 20,000 38.500 115,000 95,000 77.000 38,500 $38,000 $56 500 S(18.500) Assuming the Fashion line is discontinued, total fooed costs remain unchanged, and the space formerly used to produce the line is rented for $27.000 per year, how will operating...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $490,000 $350,000 $140,000 Variable expenses $375,000 255,000 120.000 Contribution margin 115.000 95.000 20.000 Fixed expenses 76,000 38,000 38.000 Operating income (loss) $39,000 $57,000 $(18,000) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by...
Boots Plus has two product lines. Hiking boots and Fashion boots Income statement data for the most recent year fol...
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 $480,000 360,000 120,000 76.000 $44,000 Hiking $340,000 235,000 105,000 38,000 $67,000 Fashion $140,000 125,000 15,000 38,000 $(23,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? O A. Decrease in total operating income of $15,000 OB. Decrease in total operating income of $140,000...
Is it A, B, C, or D Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the...
Is
it A, B, C, or D
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 355,000 235,000 120,000 Contribution margin 125,000 105,000 20,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $49,000 $67,000 ($18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Increase $5,000 Increase $18,000 Decrease...
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 Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $510,000 355,000 155,000 76,000 $79.000 Luxury $380,000 $235,000 145,000 38,000 $107.000 Sporty $130,000 120,000 10,000 38.000 $(28,000) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be...
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...
All About Farm Animals has two product lines: Horse feed and Cow feed. Contribution margin income...
All About Farm Animals has two product lines: Horse feed and Cow feed. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Horse Feed $405,000 $320,000 $65,000 $25,000 $340,000 $295,000 $99,000 $47,000 $241,000 $248,000 Cow Feed $85,000 $40,000 $45,000 $52,000 $17,000) Assuming total fixed costs remain unchanged, how would discontinuing the Cow food line affect operating income? Decrease in total operating income of $437,000 Increase in...
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...
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...
14 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) Totall $500,000 365.000 135,000 79.000 $56.000 Hiking $360,000 245.000 115,000 39.500 $75,500 Fashion $140,000 120.000 20.000 39.500 -$19.500 Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income...
Boots Plus has two product lines Hking boots and Fashion boots Income statement data for the most recent year follow Total Hiking Fashion Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (oss) $520 000 405,000 $380,000 $140,000 285.000 120,000 20,000 38.500 115,000 95,000 77.000 38,500 $38,000 $56 500 S(18.500) Assuming the Fashion line is discontinued, total fooed costs remain unchanged, and the space formerly used to produce the line is rented for $27.000 per year, how will operating...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $490,000 $350,000 $140,000 Variable expenses $375,000 255,000 120.000 Contribution margin 115.000 95.000 20.000 Fixed expenses 76,000 38,000 38.000 Operating income (loss) $39,000 $57,000 $(18,000) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by...
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 $480,000 360,000 120,000 76.000 $44,000 Hiking $340,000 235,000 105,000 38,000 $67,000 Fashion $140,000 125,000 15,000 38,000 $(23,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? O A. Decrease in total operating income of $15,000 OB. Decrease in total operating income of $140,000...
Is
it A, B, C, or D
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 355,000 235,000 120,000 Contribution margin 125,000 105,000 20,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $49,000 $67,000 ($18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Increase $5,000 Increase $18,000 Decrease...
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 $510,000 355,000 155,000 76,000 $79.000 Luxury $380,000 $235,000 145,000 38,000 $107.000 Sporty $130,000 120,000 10,000 38.000 $(28,000) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be...
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...
All About Farm Animals has two product lines: Horse feed and Cow feed. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Horse Feed $405,000 $320,000 $65,000 $25,000 $340,000 $295,000 $99,000 $47,000 $241,000 $248,000 Cow Feed $85,000 $40,000 $45,000 $52,000 $17,000) Assuming total fixed costs remain unchanged, how would discontinuing the Cow food line affect operating income? Decrease in total operating income of $437,000 Increase in...
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...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 42 minutes ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 1 hour ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 2 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 4 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 5 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 6 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 9 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 9 hours ago