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

Total

Hiking

Fashion

Sales revenue

$ 530 comma 000

$530,000

$ 390 comma 000

$390,000

$140,000

Variable expenses

405 comma 000

405,000

285 comma 000

285,000

120,000

Contribution margin

125 comma 000

125,000

105 comma 000

105,000

20,000

Fixed expenses

79 comma 000

79,000

39 comma 500

39,500

39 comma 500

39,500

Operating income(loss)

$46 comma 000

46,000

$ 65 comma 500

$65,500

$( 19 comma 500 )

$(19,500)

If $ 27 comma 000

$27,000 of fixed costs will be eliminated by discontinuing the Fashionline, how will operating income beaffected?

A.

Decrease $ 48 comma 500

$48,500

B.

Increase $ 7 comma 000

$7,000

C.

Increase $ 101 comma 000

$101,000

D.

Increase $ 55 comma 000