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Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $520,000 $365,000 155,000 77,000 $78,000 Hiking $380,000 245,000 135,000 38,500 $96,500 Fashion $140,000 120,000 20,000 38,500 $(18,500) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots to 250% of the current production, how will operating income be affected? A. Increase $182,500 B. Decrease $182,500 C. Increase $245,000 D. Increase $260,500