Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data...
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Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss $1,050,000 430.000) S620,000 180.000) $440,000 Total Batting Helmets Football Helmets $700,000 (150000) $550,000 (90.000) $460,000 350,000 (280000) $70,000 (90.000) $20,000) If $50,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company O A. Operating income will decrease by $20,000 O B. Operating income will increase by $70,000 C. Operating income will increase by $50,000. O D. Operating income will decrease by $90,000 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss $1,050,000 430.000) S620,000 180.000) $440,000 Total Batting Helmets Football Helmets $700,000 (150000) $550,000 (90.000) $460,000 350,000 (280000) $70,000 (90.000) $20,000) If $50,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company O A. Operating income will decrease by $20,000 O B. Operating income will increase by $70,000 C. Operating income will increase by $50,000. O D. Operating income will decrease by $90,000
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