#7 ) Armor Sports, lnc. has two product linesbetting helmets and football helmets. The income statement data for the most - l l recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $1,050,000 $700,000 $350,000 Variable costs (490,000) (200,000) , (290,000) Contribution margin $560,000 $500,000 $60,000 Fixed costs (190,000) (90,000) (1 00,000) ) Operating income (loss) ' $370,000 $410,000 $(40,000) i . i What is the effect of dropping football helmets line on the operating income of the campany? (Assume that xed costs l remain unchanged and that there would be no adverse effect on other sales) :1 . (.: : D " '- "'"_ " _' _M, ' ' i l i i n \\ O A. Operating income will decrease by $350,000. " O 8. Operating income will increase by $90,000. l '1 O c. Operating income will decrease by $60,000. 0 D. Operating income will increase by $40,000. \\