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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.

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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. Total Rain Coats Snow Boots Sales revenue $480,000 $340,000 $140,000 Variable expenses 355,000 235,000 120,000 Contribution margin 125,000 105,000 20.000 Fixed expenses 81,000 40.500 40.500 Operating income (loss) $44,000 $64.500 $(20,500) If $30,000 of fixed costs will be eliminated by discontinuing the Snow Boots line, how will operating income be affected? O A. Decrease $45,500 OB. Increase $49.000 OC. Increase $93.000 D. Increase $10.000

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