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

Multiple Choice

Crash Sports,Inc.has two product lines-batting helmets and football helmets.The income statement data for the most recent year is as follows: $$\begin{array} { | l | r | r | r | } \hline & { \text { Total } } & \text { Batting Helmets } & \text { Football Helmets } \\\hline \text { Sales revenue } & \$ 1,050,000 & \$ 700,000 & \$ 350,000 \\\hline \text { Variable costs } & \underline { ( 530,000 } & \underline { ( 250,000 ) } & ( 280,000 ) \\\hline \text { Contribution margin } & \$ 520,000 & \$ 450,000 & \$ 70,000 \\\hline \text { Fixed costs } & ( 170,000 & ( 80,000 ) & ( 90,000 ) \\\hline \text { Operating income (loss) } & \$ 350,000 & \$ 370,000 & \$ ( 20,000 ) \\\hline\end{array}$$ 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?

A) Operating income will increase by $50,000.
B) Operating income will increase by $70,000.
C) Operating income will decrease by $90,000.
D) Operating income will decrease by $20,000.