Galley, Inc. manufactures two product lines, toasters and blenders. Below is the most recent contribution margin segmented income statement prepared by Galleys accountant, who allocated common fixed costs between the two segments based on sales revenue. Total Toasters Blenders Sales $ 1,000,000 $ 450,000 $ 550,000 Variable costs 745,000 300,000 445,000 Contribution margin 255,000 150,000 105,000 Traceable fixed costs (80,000) (25,000) (55,000) Segment margin $175,000 $125,000 $50,000 Common fixed costs (40,000) (18,000) (22,000) Operating income (loss) $135,000 $107,000 $28,000

Galley plans to discontinue the production of blenders and use the freed-up capacity to double the production and sales of toasters. If blenders are discontinued, Galley will avoid half of the fixed costs traceable to the blender product line. On the other hand, doubling production of toasters will increase the fixed costs traceable to the toaster product line by $35,000. What would be the impact on Galleys operating income of discontinuing the blender product line?