Question
Protector, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Sales revenue
Protector, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Sales revenue me Variable costs Contribution margin Fixed costs Operating income (loss) M: Total $950,000 Batting Helmets Football Helmets $600,000 $350,000 (530,000) (250,000) (280,000) $420,000 $350,000 $70,000 (182,000) (90,000) (92.000) $238,000 $260,000 $(22,000) 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? REXXCE Sec 20 OA. Operating income will increase by $70,000. OB. Operating income will decrease by $30,000. OC. Operating income will increase by $30,000 OD. Operating income will decrease by $70,000
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