Question 1 : currently stuck on

Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Batting Football Total Helmets Helmets Sales revenue $1,000,000 $600,000 $400,000 Variable costs (430,000) (150,000) (280,000) Contribution margin $570,000 $450,000 $120,000 Fixed costs (240,000) (90,000) (150,000) Operating income (loss) $330,000 $360,000 $(30,000) If $90,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company? O A. Operating income will decrease by $150,000. O B. Operating income will decrease by $30,000. O C. Operating income will increase by $120,000. O D. Operating income will increase by $90,000. click to select your answerOdeleita Corporation is considering an investment of $520,000 in a land development project. The investment will yield cash inows of $220,000 per year for ve years. The company uses a discount rate of 0%. What is the net present value of the investment? Present value of an ordinary annuity of $1: 0% 0'0: 10% 1 0.025 0.01? 0.000I 2 1.?03 1.?50I 1.?35 3 25?? 2.531 2-110? :1- 3.312 3.24 3.1? 5 3.003 3.00I 3.?01 C} A. $343,200 C} 13. $335,000 C} C. $220,000 C} D. $230,200 Mosaic Tile Company is considering an investment in new equipment costing $853,000. The equipment will be depreciated en a straight line basis over a ve vear life and is expected to have a residual value at $53,000. The equipment is expected to generate net cash inews cf $1,002,000 in total during the ve vear life. What is the accounting rate cf retum associated with the equipment investment? [Ruund vcur answer to two decimal places] C} A. 9.35% C} B. 13.55% C} C. 43.5?% C} D. 9.15%