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Benjamin Sports Inc. has two product linessoftball helmets and football helmets. Income statement data for the most recent year follow: Tot al Softball Helmets Football

Benjamin Sports Inc. has two product linessoftball helmets and football helmets. Income statement data for the most recent year follow:

Total

Softball Helmets

Football Helmets

Sales revenue

$850,000

$500,000

$350,000

Variable expenses

(530,000)

(250,000)

(280,000)

Contribution margin

$320,000

$250,000

$70,000

Fixed expenses

(180,000)

(90,000)

(90,000)

Operating income (loss)

$140,000

$160,000

$(20,000)

Assuming fixed costs remain unchanged, and that there would be no adverse effect on other sales. What will be the effect of dropping Football Helmets line on the operating income of the company?

A) Operating income will increase by $20,000.

B) Operating income will increase by $90,000.

C) Operating income will decrease by $70,000.

D) Operating income will decrease by $350,000.

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