Pet Food Inc. has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Dog Food Total $415,000 $85,000 $65,000 $40,000 Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) $350,000 $101,000 $249,000 OA. Increase $229,000 B. Decrease $20,000 C. Increase $20,000 D. Increase $478,000 Cat Food $330,000 $25,000 $305,000 $49,000 $256,000 $45,000 $52,000 $(7,000) Assuming the Dog food is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $25,000 per year, how will operating income be affected?

Assuming the Dog food is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $25,000 per year, how will operating income be affected? A. Increase $229,000 B. Decrease $20,000 C. Increase $20,000 D. Increase $478,000