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	$500,000	$360,000	$140,000
Variable Expenses	395,000	$275,000	$12,000
Contribution Margin	105,000	$85,000	$20,000
Fixed Expenses	80,000	$40,000	$40,000
Operating income (loss)	$25,000	$45,000	$(20,000)

Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $ 30,000 per year, how will operating income be affected?

A.

Decrease $ 10,000

B.

Increase $ 10,000

C.

Increase $ 60,000

D.

Increase $ 35,000