Head Bucket, Inc. has two product lines—batting helmets and football helmets. The income statement data for the most recent year is as follows in the chart.Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be ________. Head Bucket, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows:Total$1,030,000(550,000)$480,000(162,000)Batting Helmets$700,000(250,000)Football HelmetsSales revenue$330,000(300,000)$30,000Variable costsContribution margin$450,000Fixed costs(70,000)(92,000)S(62,000)Operating income (loss)$318,000$380,000Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used todouble the production of batting helmets, operating income will beA. $380,000B. $450,000OC. $738,000O D. $162,000

Income Statement of the business means a financial statement which shows all revenues and expenses…

Answered: Head Bucket, Inc. has two product…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Head Bucket, Inc. has two product lines—batting helmets and football helmets. The income statement data for the most recent year is as follows in the chart.

Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be ________.

Head Bucket, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows:
Total
$1,030,000
(550,000)
$480,000
(162,000)
Batting Helmets
$700,000
(250,000)
Football Helmets
Sales revenue
$330,000
(300,000)
$30,000
Variable costs
Contribution margin
$450,000
Fixed costs
(70,000)
(92,000)
S(62,000)
Operating income (loss)
$318,000
$380,000
Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to
double the production of batting helmets, operating income will be
A. $380,000
B. $450,000
OC. $738,000
O D. $162,000

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