Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total $500,000 375,000 125,000 Fixed expenses 80,000 Operating income (loss) $40,000 If $30,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Sales revenue Variable expenses Contribution margin Increase $10,000 O Increase $99,000 Decrease $49,000 O Increase $54,000 Hiking $360,000 255,000 105,000 40,000 $65,000 Fashion $140,000 120,000 20,000 40,000 -$20,000

Increase $10.000 Increase 599,000 Decrease $49,000 Increase $54,000