Protector, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: 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 $60,000.
B) Operating income will increase by $40,000.
C) Operating income will decrease by $40,000.
D) Operating income will decrease by $60,000.
Correct Answer:
Verified
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