Protector,Inc Assuming the Football Helmets Line Is Dropped,total Fixed Costs Remain

Protector,Inc.has two product lines-batting helmets and football helmets.The income statement data for the most recent year is as follows: $$\begin{array} { | l | r | r | r | } \hline & { \text { Total } } & \text { Batting Helmets } & \text { Football Helmets } \\\hline \text { Sales revenue } & \$ 840,000 & \$ 500,000 & \$ 340,000 \\\hline \text { Variable costs } & ( 480,000 & \underline { ( 200,000 ) } & ( 280,000 ) \\\hline \text { Contribution margin } & \$ 360,000 & \$ 300,000 & \$ 60,000 \\\hline \text { Fixed costs } & ( 170,000 & ( 80,000 ) & ( 90,000 ) \\\hline \text { Operating income (loss) } & \$ 190,000 & \$ 220,000 & \$ ( 30,000 ) \\\hline\end{array}$$ 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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