Sports Hats, Etc -
Assuming the Football Helmets Line Is Dropped, Total Fixed

Sports Hats, Etc. has two product lines-baseball helmets and football helmets. Income statement data for the most recent year follow:
$\begin{array}{|l|r|r|r|}\hline&&&\text { Football } \\&\text { Total } & \text { Baseball Helmets } &\text { Helmets }\\\hline \text { Sales revenue } & \$ 460,000 & \$ 310,000 & \$ 150,000 \\\hline \text { Variable expenses } & 355,000 & 235,000 & 120,000 \\\hline \text { Contribution margin } & 105,000 & 75,000 & 30,000 \\\hline \text { Fixed expenses } & 76,000 & 38,000 & 38,000 \\\hline \text { Operating income (loss) } & \$ 29,000 & \$ 37,000 & \$(8,000) \\\hline\end{array}$


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Assuming the Football Helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $45,000 per year, how will operating income be affected?

A) Operating income will increase $15,000.
B) Operating income will increase $37,000.
C) Operating income will decrease $7,000.
D) Operating income will decrease $37,000.