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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 $510,000 355,000 155,000 77,000 $78,000 Hiking $370,000 235,000 135,000 38,500 $96,500 Fashion $140,000 120,000 20,000 38,500 $(18,500) 1f $26,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? O A. Increase $6,000 OB. Decrease $48,500 O C. Increase $166,000 OD. Increase $88,000

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