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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 Fixed expenses Operating income (loss) Total $480,000 405,000 75,000 78,000 $(3,000) Hiking $340,000 285,000 55,000 39,000 $16,000 Fashion $140,000 120,000 20,000 39,000 $(19,000) If $29,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? A. Increase $4,000 B. Increase $9,000 C. Increase $7,000 D. Decrease $49,000

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