Question 16 Mobile Company has two product lines. AA batteries and AAA batteries. Here is the most Income statement prepared by Mobile's accountant, broken down by product line Sales revenue Variable costs Contribution margin Fixed costs Operating income AA batteries $ 620,000 (470,000) 150,000 (88,000) $62,000 AAA batteries $ 326,000 (210,000) 116,000 (62,000) $54,000 Total $ 946,000 (680,000) 266,000 (150,000) $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 Decrease $68,000 Decrease $34.000 Increase $82,000 None of the above