Crash Sports,Inc.has two product lines-batting helmets and football helmets.The income statement data for the most recent year is as follows: $\begin{array}{|l|r|r|r|}
\hline& \text { Total } & \text { Batting Helmets } & \text { Football Helmets } \
\hline \text { Sales revenue } & \$ 1,050,000 & \$ 700,000 & \$ 350,000 \
\hline \text { Variable costs } & \underline{(430,000)} & \underline{(150,000)} & \underline{(280,000)}_{} \
\hline \text { Contribution margin } & \$ 620,000 & \$ 550,000 & \$ 70,000 \
\hline \text { Fixed costs } & \underline{(180,000} & \underline{(90,000)} & \underline{(90,000}_{} \
\hline \text { Operating income (loss) } & \underline{\$ 440,000} & \underline{\$ 460,000} & \underline{\$(20,000)}_{} \
\hline
\end{array}$ If $50,000 of fixed costs will be eliminated by dropping the football helmets line,how will dropping football helmets affect operating income of the company?

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The Answer of Crash Sports,Inc.has two product lines-batting helmets and football helmets.The income statement data for the most recent year is as follows: $\begin{array}{|l|r|r|r|}
\hline& \text { Total } & \text { Batting Helmets } & \text { Football Helmets } \
\hline \text { Sales revenue } & \$ 1,050,000 & \$ 700,000 & \$ 350,000 \
\hline \text { Variable costs } & \underline{(430,000)} & \underline{(150,000)} & \underline{(280,000)}_{} \
\hline \text { Contribution margin } & \$ 620,000 & \$ 550,000 & \$ 70,000 \
\hline \text { Fixed costs } & \underline{(180,000} & \underline{(90,000)} & \underline{(90,000}_{} \
\hline \text { Operating income (loss) } & \underline{\$ 440,000} & \underline{\$ 460,000} & \underline{\$(20,000)}_{} \
\hline
\end{array}$ If $50,000 of fixed costs will be eliminated by dropping the football helmets line,how will dropping football helmets affect operating income of the company?

Crash Sports,Inc If $50,000 of Fixed Costs Will Be Eliminated by Dropping