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Faros Hats Inc

Question 81

Multiple Choice

Faros Hats Inc.has two product lines-baseball helmets and football helmets.The income statement data for the most recent year is as follows: Faros Hats Inc.has two product lines-baseball helmets and football helmets.The income statement data for the most recent year is as follows:   - 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? A) Operating income will increase by $50,000. B) Operating income will increase by $70,000. C) Operating income will decrease by $90,000. D) Operating income will decrease by $20,000.
- 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?


A) Operating income will increase by $50,000.
B) Operating income will increase by $70,000.
C) Operating income will decrease by $90,000.
D) Operating income will decrease by $20,000.

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