Question 6 2.5 p The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: Sales revenue Nariable expenses Contribution margin Fixed expenses Operating income (loss) Curling Irons Straighteners $630,000 $260,000 $470,000 $210,000 $160,000 $50,000 $95,000 $95,000 $65,000 -$45,000 Total $890,000 $680,000 $210,000 $190,000 $20,000 If fixed costs remain unchanged and Lovely Locks discontinues the Straightener line, how will operating income change? O Will increase by $190,000 O Will decrease by $190,000 O Will increase by $50,000 O Will decrease by $50,000 Question 7 2.5 pts Who Done It Mystery Theater sells tickets for dinner and a show for $60 each. The cost of providing dinner is $28 per ticket and the fixed cost of operating the theater is $90,000 per month. The company can accommodate 9,000 patrons each month. What is the projected monthly income if 5,000 patrons visit the theater each month? O $288,000 O $378,000 O $210,000 O $70,000 Question 8 2.5 pts Question 10 2.5 pts The mixing department has 19,000 units and $54,000 in costs for which to account of the 19.000 units, 13,000 were completed and transferred to the next department. The 6,000 remaining were 25% complete for conversion costs. Direct materials are added at the beginning of the process, and the conversion costs are added evenly throughout the process. The cost per equivalent unit is $4.25 for direct materials and $0.70 for conversion costs. The total costs to account for are $54,000. O $77,513 O $26,550. O $29,700