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Faros Hats, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: What is
Faros Hats, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.) A. Operating income will decrease by $350,000. B. Operating income will increase by $40,000. C. Operating income will increase by $70,000. D. Operating income will decrease by $60,000
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