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Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Hiking Fashion $480,000 $340,000 $140,000 $355,000 235,000 120,000 125,000 105,000 20,000 79,000 39,500
Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Hiking Fashion $480,000 $340,000 $140,000 $355,000 235,000 120,000 125,000 105,000 20,000 79,000 39,500 39,500 $46,000 $65,500 $(19,500) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots to 250% of the current production, how will operating income be affected? OA. Increase $137,500 OB. Increase $235.000 OC. Increase $183.500 OD. Decrease $137,500
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