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Boots Plus has two productlines: Hiking boots and Fashion boots. Income statement data for the most recent yearfollow: Total Hiking Fashion Sales revenue $480,000 $340,000

Boots Plus has two productlines: Hiking boots and Fashion boots. Income statement data for the most recent yearfollow:

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)

Assuming the Fashion line isdiscontinued, total fixed costs remainunchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by an additional250%, how will operating income beaffected?

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