Tiger Pride Produces Two Product Lines: T-Shirts and Sweatshirts

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) $216,500
B) $100,500
C) $116,000
D) $514,500