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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 Super Total 15,000 3,000 18,000 $450,000 $720,000 $1,170,000 340,000 360,000 700,000 $110,000 $360,000 $ 470,000 110,000 154,000 264,000 $ $206,000 $ 206,000 Fixed manufacturing costs included in cost of goods sold amount to $4 per unit for Regular and $20 per unit for Super. Variable selling expenses are $5 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 1,500 units of Super, what would be the impact on operating income
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