Helmets, Inc, has two product lines, baseball helmets and football helmets. The following income statements...
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Helmets, Inc, has two product lines, baseball helmets and football helmets. The following income statements relate to the most recent year. Baseball helmets Sales: $310,000 Variable costs: $235,000 Contribution margin: $75,000 Fixed costs: $38,000 Net income: $37,000 Football helmets Sales: $150,000 Variable costs: $120,000 Contribution margin: $30,000 Fixed costs: $38,000 Net loss: ($8,000) If the football helmet line is dropped and $32,000 of fixed costs is eliminated, operating income would increase $24,000. increase $ 2,000. increase $8,000 decrease $6,000
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