Sanchez Semiconductors produces 200.000 high-tech computer chips per month Each chip uses a component that Sanchez makes in-house. The variable costs to make the component are $130 per unit and the fixed costs are $1,100,000.00 per month. The company has been approached by a foreign producer who can supply me component within acceptable quality standards, for $1 20 each. If the company chooses to outsource fixed costs can be reduced by 50% There are no other uses for the facilities currently employed in making the component What would be the effect on operating income, if the company decides to outsource? OA. There would be no effect on operating income B. Operating income would increase by $570,000.00 OC. Operating income would increase by $240,000.00 OD. Operating income would decrease by $20,000.00 Armor Sporto, inc. has two product lines---batting helmets and football remeto The Income statemeny data for the most recent year is as follows Total Batting Helmets Football Helmets Sales revenue $1.050.000 $700.000 $350,000 Variable costs (480,000) 200.000) (280.000) Contribution margin $570,000 $500.000 $70,000 Fixed costs (190,000) (90,000) (100,000) Operating income (loss) $380,000 $410.000 $130,000) What is the effect of dropping football helmets line on the operating income of the company? (Assume that foed costs remain unchanged and that there would be no adverse effect on other sales.) O A Operating income will decrease by $350,000 B. Operating income will increase by $90,000 OC Operating income will increase by $30,000 D. Operating income will decrease by $70,000 Maritime Sail Makers manufactures sails for salboats. The company has the capacity to produce 37.000 sails per year and is currently producing and selling 25.000 sais por year The following information relates to current production Sales price per unit $180 Variable costs per unit Manufacturing $50 Selling and administrative $20 Total fixed costs Manufacturing $700,000 Selling and administrative $300.000 it a special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, fixed costs remain unchanged, and there are no variable seting and administrative costs for O A. Operating income increases by $605,000 B. Operating income decreases by $605,000 C. Operating income decreases by $495.000 D. Operating income increases by $495.000