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Polynesian Products sols 1.800 kayaks per year at a price of 5480 per unit. Polynesian sells in a highly competitive market and uses target pricing

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Polynesian Products sols 1.800 kayaks per year at a price of 5480 per unit. Polynesian sells in a highly competitive market and uses target pricing The company has 5900.000 of assets and the shareholders wish to make a profit of 15% on assets. Variable costs are 5220 per unit and CANNOT be reduced. How much are the target fixed costs? $265.000 $410.000 30 000 31000 Sports Hats, Etc. has two product lines-baseball helmets and football helmets. Income statement data for the most recent year follow Football Total Baseball Helmets Helmets 5460,000 $310,000 $310.000 $150 $150,000 expenses 335.000 235.000 120.000 N 105,000 $75,000 30,000 Feed expenses 38.000 38.000 operating income (lor $37.000 $68.000 It $20,000 of fixed costs will be eliminated by dropping the Football Helmets line, how will operating income be affected? Operating income will increase $12.000 Operating income will increase $20,000 Operating income will decrease $10,000 Operating income will decrease $14,000, Lowwater Salmakers manufactures sails for Sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sals per year. The following Information relates to current production Sale price per unit Variable costs per unit Manufacturing Marketing and administrative Total fixed costs: $64.000 Manufacturing Marketing and administrative If a special sales order is accepted for 3,000 sails at a price of 575 per unit, fed costs remain unchanged, and there are no additional variable marketing and administrative costs for the order what is the change in operating income? Operating income decreases $5.000 Operating income decreases $35 000 Operating income increases $35.000 Operating income increases $50.000

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