10) Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

	Total	Hiking	Fashion
Sales revenue	$480,000	$340,000	$140,000
Variable expenses	355,000	235,000	120,000
Contribution margin	125,000	105,000	20,000
Fixed expenses	76,000	38,000	38,000
Operating income (loss)	$49,000	$67,000	$(18,000)

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 by 250%, how will operating income be affected? 10) ______

A) Decrease $137,500 B) Increase $235,500

C) Increase $186,500 D) Increase $137,500