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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 Super 5,000 $350,000 $950,000 Total 19,000 $1,300,000 892,000 292,000 600,000 $ 58,000 $350,000 $ 408,000 $ 58,000 148,000 206,000 0 $202,000 $ 202,000 Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 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 1,600 units of Super, what would be the impact on operating Income? Multiple Choice $34,500 Increase $54,000 Increase $68,000 Increase $100,000 Increase None of the answers is correct

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