Armor Sports, Inc. has two product linesbatting helmets and football helmets. The income statement data for the most recent year is as follows: Total Sales revenue $840,000 Variable costs (440,000) Contribution margin $400,000 Fixed costs (160,000) Operating income (loss) $240,000 Batting Helmets $500,000 (150,000) $350,000 (70,000) Football Helmets $340,000 (290,000) $50,000 (90,000) $280,000 $(40,000) O A. Operating income will increase by $70,000. OB. Operating income will decrease by $50,000. OC. Operating income will decrease by $340,000. OD. Operating income will increase by $40,000. Ignite Products is a price-taker. The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price of the electric wire is $800 per unit. The company has $3,000,000 in average assets, and the desired profit is a return of 9% on assets. Assume all products produced are sold. The company provides the following information: units per per unit Sales volume 110,000 year Variable costs $700 Fixed costs $12,000,000 per year If fixed costs cannot be reduced, how much reduction in variable costs will be needed to achieve the desired target? OA. $270,000 OB. $1,270,000 OC. $77,000,000 OD. $12,000,000