Green patsures golf course is planning for the coming season. Investors would like to earn a 10% return on the company's $40 million of assets. the company primarly incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $ 15,000,000 for the golfing season. About 400,000 golfers are expected each year. variable costs are about $20 per golfer. The green Patsure golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost plucing approach, what price should Green Patsure charge for round golf ?

Darren Company has three product lines : D, E and F the following information is available: D E F

D E F

Sales Revenue $70,000 $40,000 $28,000

Variable expenses $40,000 $21,000 $12,000

Contribution margin $30,000 $19,000 $16,000

Fixed expenses $12,000 $15,000 $17,000

perating income ( loss) $18,000 $4,000 $(1,000)

Darren Company is thinking of dropping product line F because it is reporting an operating income loss. All fixed costs are unavoidable. Assuminh Darren company drops line F and is able to double the production and sales of product line E without increasing fixed costs. What affect will this have on operating income? by how much?