Protector, Inc. has two product lineslong dashbatting helmets and football helmets. The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $ 840 comma 000 $ 500 comma 000 $ 340 comma 000 Variable costs (450 comma 000) (150 comma 000) (300 comma 000) Contribution margin $ 390 comma 000 $ 350 comma 000 $ 40 comma 000 Fixed costs (160 comma 000) (70 comma 000) (90 comma 000) Operating income (loss) $ 230 comma 000 $ 280 comma 000 $(50 commas 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 comma 000 per year, how will operating income be affected? 

A. Operating income will increase by $ 40 comma 000. 

B. Operating income will increase by $ 70 comma 000. 

C. Operating income will decrease by $ 40 comma 000. 

D. Operating income will decrease by $ 70 comma 000.

Answer rating: 100% (QA)

Option C is correct Operating i... View the full answer