Sole Sneakers Company has two product lines: Hiking boots and Fashion boots. Income statement data for the mos recent year follow: Fashion $140,000 120,000 20,000 39,500 $(19,500) If $28,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Sales revenue Variable expenses Contribution margin Total Hiking $490,000 $350,000 385,000 265,000 105,000 85,000 Fixed expenses 79,000 39,500 Operating income (loss) $26,000 $45,500 O A. Decrease $49,500 B. Increase $8,000 C. Increase $36,000 D. Increase $62,000

Sole Sneakers Company has two product lines: Hiking boots and Fashion boots. Income statement data for the mo recent year follow: If $28,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? A. Decrease $49,500 B. Increase $8,000 C. Increase $36,000 D. Increase $62,000