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Sports Hats, Etc

Question 92

Multiple Choice

Sports Hats, Etc. has two product lines-baseball helmets and football helmets. Income statement data for the most recent year follow: Sports Hats, Etc. has two product lines-baseball helmets and football helmets. Income statement data for the most recent year follow:   If $20,000 of fixed costs will be eliminated by dropping the Football Helmets line, how will operating income be affected? A) Operating income will increase $12,000. B) Operating income will increase $20,000. C) Operating income will decrease $10,000. D) Operating income will decrease $14,000. If $20,000 of fixed costs will be eliminated by dropping the Football Helmets line, how will operating income be affected?


A) Operating income will increase $12,000.
B) Operating income will increase $20,000.
C) Operating income will decrease $10,000.
D) Operating income will decrease $14,000.

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