Armor Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Batting Helmets $700,000 (150,000) Total Football Helmets Sales revenue $1,040,000 (430,000) $610,000 (180,000) $430.000 $340,000 (280.000) $60.000 Variable costs Contribution margin Fixed costs $550,000 (90,000) (90,000) ($30,000) Operating income (loss) $460,000 What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.) O A. Operating income will increase by $90,000. O B. Operating income will increase by $30,000. O C. Operating income will decrease by S60,000. O D. Operating income will decrease by $340,000.

Blossom Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 70% of its sales and provide a contribution margin ratio of 20% Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $12,480,000 (that is $62,400 per service outlet). Sales mix is determined based upon total sales dollars. (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places ag 0.25 and round final answers to O decimal places, eg 2.510) Sales Dollars Needed Per Product Oil changes Brake repair

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 12,00 $ 2.80 $ 129,000 Product Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Greengrow $.33.00 $12.00 $ 41,000 Last year the company produced and sold 41,000 units of Weedban and 22.500 units of Greengrow. Its annual common fixed expenses are $100,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company $ 5,289,500 $4,502,000 $ 607,500 3,270,000 143,500 270,000 2,019,500 4,448,500 427,500 2,019,500 $4,448,500 $ 427,500 $ 2,019,500

Shamrock Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A Product B Product C $110,000 $135,000 75,000 125,000 $88,000 46,000 25,200 71,200 $16,800 18,000 93,000 $17,000 18,000 143,000 $(8,000) Total $333,000 246,000 61,200 307.200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machine hours for each product are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.

The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Total $ 917,000 460,000 457,000 Dirt Bikes $ 264,000 111,000 153,000 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. 70,000 44,400 115,700 183,400 413,500 $ 43,500 Required 1 38,700 80,400 167,800 $ 43,200 Racing Bikes $ 251,000 158,000 93,000 20,600 15,600 36,400 50, 200 122,800 $ (29,800)

Oriole Industries production division reported a net operating loss of $516000 in 2021. Included in that amount were common fixed corporate expenses of $734000 that were allocated to divisions based on segment gross profit. The division's segment margin was O $218000. O ($218000). O $516000. O ($516000).

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:     Total DirtBikes Mountain Bikes RacingBikes Sales $ 928,000   $ 261,000   $ 408,000   $ 259,000   Variable manufacturing and selling expenses   457,000     115,000     191,000     151,000   Contribution margin   471,000     146,000     217,000     108,000   Fixed expenses:                         Advertising, traceable   70,400     8,600     40,800     21,000   Depreciation of special equipment   42,700     20,100     7,200     15,400   Salaries of product-line managers   115,800     40,100     38,800     36,900   Allocated common fixed expenses*   185,600     52,200     81,600     51,800   Total fixed expenses   414,500     121,000     168,400     125,100   Net operating income (loss) $ 56,500   $ 25,000   $ 48,600   $ (17,100)       *Allocated on the basis of sales dollars.   Management is…

The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) *Allocated on the basis of sales dollars. Total Dirt Bikes $ 920,000 469,000 451,000 $ 266,000 111,000 155,000 Mountain Bikes $ 402,000 200,000 Racing Bikes $ 252,000 158,000 202,000 94,000 69,200 8,400 40,400 20,400 44,000 21,000 7,700 15,300 114,700 40,300 38,600 35,800 184,000 53,200 80,400 50,400 411,900 122,900 167,100 121,900 $ 39,100 $ 32,100 $ 34,900 $ (27,900) Management is considering discontinuing the racing bikes. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage…

Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 116.00 $ 64.00 $ 12.00 $ 80.00 $ 52.00 $ 8.00 1.5 DLHS 1.0 DLHS 29,000 units 76,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: $ 1,912,000 119,500 DLHS Estimated total manufacturing overhead Estimated total direct labor-hours Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead…

The following operating information reports the results of Ayayai Company’s production and sale of 12,500 air-conditioned motorcycle helmets last year. Based on early market forecasts, Ayayai expects the same results this year. Sales   $2,026,000   Variable manufacturing expenses   862,000   Fixed manufacturing expenses   279,000   Variable selling and administrative expenses   112,000   Fixed selling and administrative expenses   229,000   The American Motorcycle Club has offered to purchase 1,600 helmets at a price of $100 each. Ayayai has sufficient idle capacity to fill the order, which would not affect the company’s cost structure or regular sales.If Ayayai accepts this order, by how much will its income increase or decrease? Operating income will select an option                                                           decreaseincrease by $enter a dollar amount  .