Rainbow Brothers Inc. has two product lines: Rain coats and Snow boots. The following is data on its Income statement for the most recent year: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490,000 Rain Coats $350,000 395,000 275,000 95,000 75,000 79,000 39,500 $16,000 $35,500 Snow Boots $140,000 120,000 20,000 39,500 $(19,500) If $27,000 of fixed costs will be eliminated by discontinuing the Snow Boots line, how will operating income be affected? OA. Decrease $48,500 O O O O B. Increase $25,000 C. Increase $7,000 D. Increase $41,000