question 15

is this right?

The income statement for Orange Company is divided by its two product lines, juice and fruit, as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating income Kloss) Juice Fruit Total $640,000 $298,000 $938,000 (455.000) (241.000) (696.000) $185,000 $57,000 $242.000 (76.000 76.000) (152,000 $109,000 $(19.000) $90,000 Orange Company is considering eliminating the fruit product line. If this line is eliminated, Orange Company will be able to eliminate $72,000 of total fixed costs. By how much would this business decision increase operating income? $57,000 $15,000 $72,000 O $133,000