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Mobile Company has two product lines, AA batteries and AAA batteries. Here is the most recent Income statement prepared by Mobile's accountant, broken down by

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Mobile Company has two product lines, AA batteries and AAA batteries. Here is the most recent Income statement prepared by Mobile's accountant, broken down by product line: AA batteries AAA batteries Total Sales revenue $ 620,000 $ 326,000 $ 946.000 Variable costs (470,000) (210,000) (680,000) Contribution margin 150,000 116,000 266,000 Fixed costs (88,000) (62,000) (150,000) Operating income $62,000 $54,000 $116,000 Mobile plans to discontinue the production and sale of AA batteries and use the resulting freed-up capacity to triple the production and sale of AAA batteries, from 100,000 units per year to 300,000 units per year. All fixed costs are common fixed costs. If Mobile discontinues the AA battery product line, what would be the incremental effect on Mobile's operating income? Increase $198.000 O Decrease $68,000 Decrease $34.000 O Increase $82,000 None of the above

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