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 ________.
Head Bucket, Inc. has two product lines—batting helmets and football helmets. The income statement data for the most recent year is as follows:
A) $350,000
B) $160,000
C) $540,000
D) $280,000
C) $540,000
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McDonald's initial target customers were children. But research proved that adults consume
more burgers than children do, so McDonald's decided to go after two new groups of target customers: teenagers and adults. They unveiled new ad campaigns that were much slicker and sophisticated than previous ones, while at the same time promising potential new customers a burger for adults called an "Arch Deluxe," a burger not much different from previous ones. The strategy used here by McDonald's is ________. A) increasing purchase frequency B) expanding to a new class of buyers C) targeting a competitor's customers D) increasing purchase amount