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Sherman Hats, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Sales revenue

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Sherman Hats, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating income Kloss) Total Batting Helmets Football Helmets $930,000 $600,000 $330,000 (550.000) (250,000) (300,000) $380,000 $350,000 $30,000 (172,000) (80.000) (92.000) $208.000 $270,000 $(62,000) Assuming the football helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $110,000 per year, how will operating income be affected? Operating income will increase by $30,000. o Operating income will decrease by $30,000. Operating income will increase by $80,000. o Operating income will decrease by $80,000

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