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	$480,000	$340,000	$140,000
Variable expenses	355,000	235,000	120,000
Contribution margin	125,000	105,000	20,000
Fixed expenses	76,000	38,000	38,000
Operating income (loss)	$49,000	$67,000	$(18,000)

If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

A.

Increase $54,000

B.

Increase $103,000

C.

Increase $5,000

D.

Decrease $45,000