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rash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: ales
rash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: ales revenue ariable costs ontribution margin xed costs perating income (loss) Total $960,000 Batting Helmets Football Helmets $600,000 $360,000 (540,000) (250,000) (290,000) $420,000 $350,000 $70,000 (170,000) (70,000) (100,000) $250,000 $280,000 $(30,000) $10,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company? A. Operating income will increase by $70,000. OB. Operating income will increase by $10,000. c. Operating income will decrease by $100,000. D. Operating income will decrease by $60,000.
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