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Question 6 0.2 points Save An Westfal Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Luxury Total $530,000 Sporty $130,000 120,000 10.000 40.000 $130,0001 Sales revenue $400,000 255.000 Variable expenses Contribution margin Fixed expenses Operating income (loss) 375,000 155,000 145,000 40.000 $105,000 80,000 $75.000 Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250 %, how will operating income be affected? O Increase $207,500 e Increase $362.500 O Increase $282.500 O Decrease $207.500