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Holy Shirts and Pants Co. makes two products, shirts and pants. Their sales information is below. Total Shirts Pants Sales revenue $1,200,000 $850,000 $350,000 Variable

Holy Shirts and Pants Co. makes two products, shirts and pants. Their sales information is below.

Total

Shirts

Pants

Sales revenue

$1,200,000

$850,000

$350,000

Variable expenses

950,000

720,000

230,000

Contribution margin

250,000

130,000

120,000

Fixed expenses

250,000

125,000

125,000

Operating income(loss)

$0

$5,000

$(5,000)

The company is considering closing the pants line, saving $115,000 in fixed expenses. What impact would this have on operating income?

Group of answer choices

Decrease $5,000

Increase $10,000

Increase $5,000

Increase $5,000

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