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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

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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 $520,000 $380,000 $140,000 Variable expenses 375,000 255,000 120,000 Contribution margin 145,000 125.000 20,000 Fixed expenses 77.000 38,500 38,500 Operating income (los) $68,000 $86,500 S(18,500) Assuming the Fashion line is discontinued total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $27.000 per year, how will operating income be affected? A Decrease $7.000 OB. Increase $143,000 C. Increase $75,000 OD. Increase $7,000

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