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Faros Hats Inc. has two product lines-baseball helmets and football helmets. The income statement data for the most recent year is as follows: Sales revenue
Faros Hats Inc. has two product lines-baseball helmets and football helmets. The income statement data for the most recent year is as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (los) Total $850,000 530,000) $320,000 (180.000 $140.000 Bieeball Helmets $500,000 (250,000 $250,000 (90.000 $160.000 Football Helmets $350,000 (280,000) $70,000 (90,000 $120,000 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 increase by $30,000. Operating income will decrease by 580,000. (C) Operating income will increase by $10.000. D Operating income will decrease by $10,000. Question 44 ( 2 Points) 46 minutes remaining Last saved 4:20 Type here to search
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