Faros Hats Inc. has two product lines of baseball helmets and football helmets. The income statement data for the most recent year is as follows:

Total

Baseball 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 the Football Helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $100,000 per year, how will operating income be affected?

A) Operating income will decrease by $10,000.

B) Operating income will decrease by $80,000.

C) Operating income will increase by $10,000.

D) Operating income will increase by $30,000.