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Head Bucket, Inc. has two product linesbatting helmets and football helmets. The income statement data for the most recent year is as follows: Total Batting

Head Bucket, Inc. has two product linesbatting helmets and football helmets. The income statement data for the most recent year is as follows:

Total

Batting Helmets

Football Helmets

Sales revenue

$940,000

$600,000

$340,000

Variable costs

(550,000)

(250,000)

(300,000)

Contribution margin

$390,000

$350,000

$40,000

Fixed costs

(162,000)

(70,000)

(92,000)

Operating income (loss)

$228,000

$280,000

$(52,000)

Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be:

A. $350,000

B. $280,000

C. $538,000

D. $162,000

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