Solution-How total fixed costs remain unchanged

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
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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How total fixed costs remain unchanged

Reference no: EM132500669

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