Question: 4) Protector, Inc. has two product lines batting helmets and football helmets. The income statement data for the most recent year is as follows: Sales

 4) Protector, Inc. has two product lines batting helmets and football

4) Protector, 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 (loss) Total $840,000 (480.000) $360,000 (170.000) $190,000 Batting Helmets $500,000 (200,000) $300,000 (80,000 $220.000 Football Helmets $340,000 (280,000) $60,000 (90.000 S(30.000 Assuming the football helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $100,000 per year, how will operating income be affected? A) Operating income will increase by $40,000. B) Operating income will increase by $60,000. C) Operating income will decrease by $60,000. D) Operating income will decrease by $40,000

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