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Armor Sports, Inc. has two product lines-batting helmets and football helmets. The income s Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss)
Armor Sports, Inc. has two product lines-batting helmets and football helmets. The income s Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Total $930,000 Batting Helmets $600,000 (540,000) $390,000 (250,000) $350,000 (180,000) $210,000 (90,000) $260,000 Football Helmets $330,000 (290,000) $40,000 (90,000) $(50,000) What is the effect of dropping football helmets line on the operating income of the company on other sales.) OA. Operating income will decrease by $40,000. OB. Operating income will increase by $50,000. OC. Operating income will increase by $90,000. Batting Helmets $600,000 (250,000) $350,000 (90,000) $260,000 The income statement data for the most recent year is as follows Football Helmets $330,000 (290,000) $40,000 (90,000) $(50,000) n the operating income of the company? (Assume that fixed costs remain unchanged and that there would be no What is the effect of dropping football helmets line on the operating income of the company? (Assume that on other sales.) OA. Operating income will decrease by $40,000. OB. Operating income will increase by $50,000. OC. Operating income will increase by $90,000. OD. Operating income will decrease by $330,000
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