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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: Sales revenue Variable

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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: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $510,000 Hiking $370,000 Fashion $140,000 355,000 235,000 120,000 155,000 135,000 20,000 81,000 40,500 40,500 $74,000 $94,500 ($20,500) If $30,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? OA. Increase $81,000 B. Increase $155,000 C. Decrease $47,500 OD. Increase $10,000

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