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Sole Sisters Company has twe product Ines Hking boats and Fashion boots Income statement data for the most recent year follow Sales revenue Variable pers

Sole Sisters Company has twe product Ines Hking boats and Fashion boots Income statement data for the most recent year follow Sales revenue Variable pers Contribution margin Fixed expenses Operating income (loss) Total $520,000 Hing $300,000 Fashion $140000 $395.000 275,000 120.000 125,000 105,000 20,000 76,000 30,000 $4000 557 000 38,000 $58,000) Assuming the Fashion Sne is discontinued, total fixed costs remain unchanged, and the space foeity used to produce the fashion line is used to increase the production at Hiking boots to 250% of the curent production, bow wil operating income be affected? OA $275,000 On Increase $137,500 OC in 106.500 OD Decrease $137.500

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