Faros Hats,Etc If $10,000 of Fixed Costs Will Be Eliminated by Dropping

question 45

Multiple Choice

Faros Hats,Etc.has two product lines-baseball helmets and football helmets.Income statement data for the most recent year follow:
$$\begin{array} { | l | l | l | l | } \hline & { \text { Total } } & { \text { Baseball Helmets } } &{ \text { Football Helmets } } \\\hline \text { Sales revenue } & \$ 860,000 & \$ 500,000 & \$ 360,000 \\\hline \text { Variable expenses } & ( 440,000 ) & ( 150,000 ) & ( \underline { 290,000 ) } \\\hline \text { Contribution margin } & \$ 420,000 & \$ 350,000 & \$ 70,000 \\\hline \text { Fixed expenses } & ( 180,000 ) & ( 80,000 ) & ( 100,000 ) \\\hline \text { Operating profit (loss) } & \$ 240,000 & \$ 270,000 & ( \$ 30,000 ) \\\hline\end{array}$$
If $10,000 of fixed costs will be eliminated by dropping the Football Helmets line,how will dropping Football Helmets affect the operating profit of the company?

• A) Operating profit will increase by $70,000.
• B) Operating profit will decrease by $100,000.
• C) Operating profit will increase by $10,000.
• D) Operating profit will decrease by $60,000.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Team Member

An individual who is part of a group working together towards a common goal, contributing unique skills and perspectives.

Team Cohesiveness

The extent to which members of a team are attracted to the team and motivated to stay in it, influencing performance and satisfaction.

Team Diversity

The presence of a wide range of differences among team members, including cultural, gender, age, and skills diversity.

Rewarding Team

Recognizing and appreciating a group's efforts and successes, often to motivate and encourage continued performance.