Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS...

 

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Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS 20,000 units $29.00 $5.00 $8.20 $3.00 $12.80 $7.00 $5.80 T-SHIRTS 67,000 units Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit $16.00 $2.00 $4.50 $2.00 $7.50 $4.00 $3.50 What is the projected decline in operating income if the direct materials costs of T-Shirts increase to $3.50 per unit and direct labor costs of Sweatshirts increase to $14.00 per unit? $100,500 O$116,000 $514.500 $216,500 Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS 20,000 units $29.00 $5.00 $8.20 $3.00 $12.80 $7.00 $5.80 T-SHIRTS 67,000 units Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit $16.00 $2.00 $4.50 $2.00 $7.50 $4.00 $3.50 What is the projected decline in operating income if the direct materials costs of T-Shirts increase to $3.50 per unit and direct labor costs of Sweatshirts increase to $14.00 per unit? $100,500 O$116,000 $514.500 $216,500

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