Rocca Hats, 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	$950,000	$600,000	$350,000
Variable costs	(430,000)	(150,000)	( 280,000)
Contribution margin	$520,000	$450,000	$70,000
Fixed costs	(182,000)	(90,000)	(92,000)
Operating income (loss)	$338,000	$360,000	$(22,000)

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.

$360,000

B.

$718,000

C.

$182,000

D.

$450,000