Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS 29,000 units $29.00 $5.00 $8.20 $3.00 $12.80 $7.00 $5.80 Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit T-SHIRTS 64,000 units $16.00 $2.00 $4.50 $2.00 $7.50 $4.00 $3.50 What is the projected decline in operating income if the direct materials costs of T-Shirts increase to $3.50 per unit and direct labor costs of Sweatshirts increase to $14.00 per unit? OA. $96,000 OB. $264,200 OC. $168,200 OD. $630,000

Tiger Pride produces two product lines: T - shirts and Sweatshirts. Product profitability is analyzed as follows: What is the projected decline in operating income if the direct materials costs of T-Shirts increase to $3.50 per unit and direct labor costs of Sweatshirts increase to $14.00 per unit? A. $96,000 B. $264,200 C. $168.200 D. $630,000