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How total fixed costs remain unchanged

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Reference no: EM132500669

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

Batting Helmets

Football Helmets

Sales revenue

$820,000

5500,00C

$320,000

Contribution margin

$390,000

 

5350,00C

 

540,000

Fixed costs

1160 0001

170.000)

(90.000)

Operating income (loss)

$230.000

5280 00C

5(50.000)

Question 1: 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

Reference no: EM132500669

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