A Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $530,000 Luxury $400,000 Sporty $130,000 355,000 235,000 120,000 175,000 165,000 10,000 81,000 $94,000 40,500 $124,500 40,500 $(30,500) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected? mony 96,198 OA. Increase $331,500 The c B. Increase $237,500 OC. Decrease $237,500 The v fixed OD. Increase $412.500 basis matte Comm