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Head Bucket, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows:
Total
Batting Helmets
Football Helmets
Sales revenue
$820,000
5500,00C
$320,000
Contribution margin
$390,000
5350,00C
540,000
Fixed costs
1160 0001
170.000)
(90.000)
Operating income (loss)
$230.000
5280 00C
5(50.000)
Question 1: Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be
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