Castillo Corporation has provided you with the following budgeted income statement for one of its products: Sales revenue Variable costs Contribution margin Fixed costs Operating loss $700,000 (430,000) $270,000 (310,000) $(40,000) Castillo has just encountered environmental problems with the product and will be forced to drop the product line altogether. Castillo will be able to eliminate 75% of the fixed costs. What will be the impact on operating income of the company? O A. Operating income will decrease by $232,500. OB. Operating income will increase by $37,500. CC. Operating income will increase by $232,500. *D. Operating income will decrease by $37,500