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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

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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 ed expenses Operating income (loss) Total $ 480,000 355.000 125,000 76,000 $49.000 Hiking $340,000 235.000 105,000 38,000 $67.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $30,000 per year how will operating income be affected? Increase $162,000 Increase $50,000 Increase $10,000 Decrease $10,000

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