Armor Sports, Inc. has two product linesbatting helmets and football helmets. The income statement data...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Armor Sports, Inc. has two product linesbatting helmets and football helmets. The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $1,040,000 $700,000 $340,000 Variable costs (430,000) (150.000) (280,000) Contribution margin $610,000 $550,000 $60,000 Fixed costs (180,000) (90.000) (90,000) Operating income (loss) $430,000 $460,000 ($30,000) 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.) O A. Operating income will increase by $30,000. O B. Operating income will decrease by 560,000 O C. Operating income will increase by $90,000 OD. Operating income will decrease by $340,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
