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Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow. Units Sales revenue Less: Cost of goods sold Gross Margin
Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow. Units Sales revenue Less: Cost of goods sold Gross Margin Less: Selling expenses Operating income (loss) Regular 14,000 $350,000 204,000 $146,000 146,000 $ Super 4,000 $760,000 480,000 $280,000 137,000 $143,000 Total 18,000 $1,110,000 684,000 $ 426,000 283,000 $ 143,000 Fixed manufacturing costs included in cost of goods sold amount to $2 per unit for Regular and $25 per unit for Super. Variable selling expenses are $3 per unit for Regular and $25 per unit for Super; remaining selling amounts are fixed. If Omar Industries eliminates Regular and uses the available capacity to produce and sell an additional 2,400 units of Super, what would be the impact on operating income
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