8) Crash Sports, Inc. has two product linesbatting helmets and football helmets. The income statement data for the most recent ear is as follows: .0000" mm $400.. (mm (@,M (@.M $57000 $450.00 $12000 (mm (mm (mm Operating income (loss) , $360,00l If $90,000 of xed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company? A) Operating income will increase by $90,000. B) Operating income will increase by $120,000. C) Operating income will decrease by $150,000. D) Operating income will decrease by $30,000. Answer: D 9) Santora Company manufactures two productstoaster ovens and bread machines. The following data are available: _-- _-_ Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Santora's production capacity is 1,800 machine hours per month, and it can sell as many units of either type as it can produce. Which product and how many units should the company produce in a month to maximize prots? (Round machine hour per unit to two decimal places and your nal answer to the nearest Whole dollar.) A) 7,200 bread machines B) 5,400 toaster ovens and 3,600 bread machines C) 7,200 toaster ovens and 5,400 bread machines D) 10,800 toaster ovens Answer: A 10) Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 30,000 parts is $100,000, which includes xed costs of $40,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $2 per unit and avoid 20% of the xed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a prot of $16,000. If Voltaic outsources, what will be the effect on operating income? A) increase of $24,000 B) decrease of $24,000 C) decrease of $8,000 D) increase of $16,000 Answer: A _