Protector, Inc Assuming the Football Helmets Line Is Dropped, Total Fixed Costs

question 71

Multiple Choice

Protector, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: $$\begin{array} { | l | r | r | r | } \hline & { \text { Total } } & \text { Batting Helmets } & \text { Football Helmets } \\\hline \text { Sales revenue } & \$ 930,000 & \$ 600,000 & \$ 330,000 \\\hline \text { Variable costs } & ( 540,000 & ( 250,000 & ( 290,000 ) \\\hline \text { Contribution margin } & \$ 390,000 & \$ 350,000 & \$ 40,000 \\\hline \text { Fixed costs } & ( 160,000 & ( 70,000 & \$ 90,000 ) \\\hline \text { Operating income (loss) } & \$ 230,000 & \$ 280,000 & \$ ( 50,000 ) \\\hline\end{array}$$ Assuming the football helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $100,000 per year, how will operating income be affected?

• A) Operating income will increase by $60,000.
• B) Operating income will increase by $40,000.
• C) Operating income will decrease by $40,000.
• D) Operating income will decrease by $60,000.

Identify and explain the key approaches to organizational behavior, including the dispositional, situational, and interactionist approaches.

Recognize the role of personality characteristics in influencing organizational behavior.

Describe the traits that constitute personality and their influence on individual behavior within organizations.

Explain the importance of the dispositional approach and its perspective on personality in organizational behavior.

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Definitions:

Decentralized Organizations

Organizations that distribute power away from a central authority, often featuring a more spread out decision-making process.

Values-based Ethics

An ethical approach that is rooted in the core values and principals of an individual or organization, guiding decision-making and actions.

Explicit Mission Statement

A clear, concise statement that defines an organization's purpose and primary objectives.

Coercive Leader

A leadership style characterized by the use of threats and punishment to influence the behavior of others.