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	$510,000	$370,000	$140,000
Variable expenses	395,000	275,000	120,000
Contribution margin	115,000	95,000	20,000
Fixed expenses	79,000	39,500	39,500
Operating income (loss)	$36,000	$55,500	$(19,500)

If

$28,000

of fixed costs will be eliminated by discontinuing the Snow Boots line, how will operating income be affected?

A.

Decrease $45,500

B.

Increase $78,000

C.

Increase $8,000

D.

Increase 42000