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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 $530.000 $390,000 $140,000 Variable expenses $385.000 265,000 120,000 Contribution margin 145.000 125,000 20.000 Fixed expenses 78,000 39.000 39,000 Operating income (loss) $67,000 $86.000 $(19,000) 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? O A. Increase $265,000 OB. Decrease $167,500 O C. Increase $234.500 OD. Increase $167,500

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