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Faros Hats Inc. has two product lines-baseball helmets and football helmet. The income statements data for the recent year is as follows: What will be
Faros Hats Inc. has two product lines-baseball helmets and football helmet. The income statements data for the recent year is as follows: What will be the effect of dropping Football I 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) If $50,000 of fixed costs will be eliminated by dropping the Football I Helmets line, how will dropping Football Helmets affect operating income of the company? Assuming the Football Helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $100,000 per year, how will operating income be affected
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