Managers strive to reduce the inconsistency between the decision model and the performance-evaluation model

Michael's Hats, 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 $900,000 $500,000 $400,000 Variable costs (480,000 ) (200,000 ) (280,000 ) Contribution margin $420,000 $300,000 $120,000 Fixed costs (230,000 ) (80,000 ) (150,000 ) Operating income (loss) $190,000 $220,000 $(30,000 ) If $90,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company? A) Operating income will increase by $90,000. B) Operating income will increase by $120,000. C) Operating income will decrease by $150,000. D) Operating income will decrease by $30,000.

In terms of the communications budget schedule, diet services, such as Jenny Craig and Weight Watchers, would ordinarily use:

A) continuous advertising schedules B) a pulsating schedule C) a derivative advertising schedule D) a flighting schedule