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Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales

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Sole Sisters Company has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $520,000 $380,000 $140,000 Variable expenses $375,000 255,000 120,000 Contribution margin 145,000 125,000 20,000 Fixed expenses 79,000 39,500 39.500 Operating income (loss) $86,000 $85,500 $(19,500) Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fastion line is used to increase the production of Hiking boots by 250%, how will operating income be affected? A. Increase $255,000 8. Decrease $167,500 C. Increase $233,500 D. Increase $167,500

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