Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Not yet answered Marked out of 2.00 P Flag question Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Total Batting Helmets Football Helmets $1,050,000 $700,000 $350,000 (430,000) (150,000) (280,000 $620,000 $550,000 $70,000 (180.000) 190.000 190.000 $440,000 $460,000 $120,000 If $50,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company? Select one: O A. Operating income will increase by $70,000. B. Operating income will increase by $50,000 O C. Operating income will decrease by $20,000. O D. Operating income will decrease by $90,000, Question 17 Not yet Argosy Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Argosy uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: answered Marked out of 2.00 Direct materials: 4 pounds per unit; $3 per pound Direct labor: 4 hours per unit; $17 per hour P Flag question Argosy produced 5000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 21,000 direct labor hours and actual total direct labor costs were $380,000. The direct labor efficiency variance was $17,000 U. Which of the following is a logical explanation for this variance? Select one: O A. The company used more labor hours than allowed by the standards. O B. The company paid a higher cost per hour for labor than allowed by the standards. O C. The company used a higher quantity of direct materials than allowed by the standards. O D. The company paid a higher cost for the direct materials than allowed by the standards. Question 18 Carolina Logistics, Inc. is considering three investment opportunities with the following payback periods: Not yet answered Marked out of 2.00 Project X Project Y Project Z Payback period 3 years 2.5 years 2.8 years Use the decision rule for payback to rank the projects from most desirable to least desirable, all else being equal. P Flag question Select one: O A. X, Y, Z O B.Y, X,Z O C. Y, Z, X O DZ, Y, X