Sales Variable costs Contribution margin Fixed costs Operating income (loss) O $140,000 O $105,000 Control $450,000 325,000 O $103,000 125,000 O$125,000 75,000 50,000 Tweener $250,000 140,000 110,000 35,000 75,000 Power $65,000 58,000 7,000 22,000 (15,000) Total $765,000 523,000 Wilson Racquet Manufacturers produces three different types of tennis racquets: Control Racquet Tweener Racquet, and a Power Racquet. Financial information for the three racquet product lines shown below: 242,000 If the fixed expenses for the Power Racquet line are not avoidable since they are allocated fixed costs, what will be total operating income be if the Power Racquet line is dropped? 132,000 110,000
Wilson Racquet Manufacturers produces three different types of tennis racquets: Control Racque Tweener Racquet, and a Power Racquet. Financial information for the three racquet product lines shown below: If the fixed expenses for the Power Racquet line are not avoidable since they are allocated fixed costs, what will be total operating income be if the Power Racquet line is dropped? $140,000 $105,000 $103,000 $125,000
