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Armor Sports, Inc. has two product lines butting helmets and footballhelmets. The income statement data for the most recent years as follow Total Batting Helmets
Armor Sports, Inc. has two product lines butting helmets and footballhelmets. The income statement data for the most recent years as follow Total Batting Helmets Football Helmets Sales revenue 5930,000 5600,000 5330,000 Variable costs (540.000) (250,000) (290,000) Contribution margin $390,000 $350,000 $40,000 Fixed costs (180,000) (90,000) (90,000) Operating income (loss) $210.000 $260,000 ${50,000) What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that O A. Operating income will decrease by $330,000 OB. Operating income will increase by $90,000. OC. Operating income will decrease by $40,000 OD. Operating income will increase by $50,000
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