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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 $490,000 $350,000 $140,000 Variable expenses $375,000 255,000 120.000 Contribution margin 115.000 95.000 20.000 Fixed expenses 76,000 38,000 38.000 Operating income (loss) $39,000 $57,000 $(18,000) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by 250%, how will operating income be affected? O A. Decrease $122,500 OB. Increase $122,500 O C. Increase $255,000 OD. Increase $161,500

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