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Business, 10.04.2020 18:16 Myrah4204

Armor Sports, Inc. has two product lineslong dashbatting helmets and football helmets. The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $ 1 comma 040 comma 000 $ 700 comma 000 $ 340 comma 000 Variable costs (440 comma 000) (150 comma 000) (290 comma 000) Contribution margin $ 600 comma 000 $ 550 comma 000 $ 50 comma 000 Fixed costs (170 comma 000) (80 comma 000) (90 comma 000) Operating income (loss) $ 430 comma 000 $ 470 comma 000 $(40 comma 000) What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.)

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