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14 Boots Plus has two product lines: Hiking boots and Fashion boots Income statement data for the most recent year follow Sales revenue Variable expenses
14 Boots Plus 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) Totall $500,000 365.000 135,000 79.000 $56.000 Hiking $360,000 245.000 115,000 39.500 $75,500 Fashion $140,000 120.000 20.000 39.500 -$19.500 Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income be affected? A) Decrease $8000 B) Increase $64,000 C) Increase $8000 D) Increase $120,000
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