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 $425,000 $63,000 Sales revenue Variable expenses $85,000 $40,000 $362,000 $45,000 Contribution margin Fixed expenses $98,000 $52,000 Operating income (loss) $264,000 $(7,000) Assuming total fixed costs remain unchanged, how would discontinuing the Dog food line affect operating income? A. Increase in total operating income of $219,000 B. Decrease in total operating income of $45,000 C. Increase in total operating income of $7,000 D. Decrease in total operating income of $483,000 Cat Food $340,000 $23,000 $317,000 $46,000 $271,000

Assuming total fixed costs remain unchanged, how would discontinuing the Dog food line affect operating income? A. Increase in total operating income of $219,000 B. Decrease in total operating income of $45,000 C. Increase in total operating income of $7,000 D. Decrease in total operating income of $483,000