Question
Mary's Helmers has two product lines-baseball and football helmets. Income statement data is as follows: TOTAL BBALL HEL FBALL HEL SALES REVENUE $850,000. $500,000. $350,000.
Mary's Helmers has two product lines-baseball and football helmets. Income statement data is as follows:
TOTAL BBALL HEL FBALL HEL
SALES REVENUE $850,000. $500,000. $350,000.
VARIABLE EXPENSES (530,000) (250,000) (280,000)
CONTRIBUTION MARGIN $320,000 $250,000 $70,000
FIXED EXPENSES (180,000) (90,000) $90,000)
OPERATING INCOME(LOSS) $140,000) $160,000 $(20,000)
Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line uis used to double the productionof baseball helmets, operating income would be;
A. $410,000 $320,000 $150,000 $250,000
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