Sports Company has two productlines: Cricket bats and Baseball bats. Income statement data for the most recent yearfollows:

Sports Company has two product lines: Cricket bats and Baseball bats. Income statement data for the most recent year follows: Total Cricket Baseball Sales revenue $480,000 $340,000 $140,000 Variable expenses 405,000 285,000 120,000 Contribution margin 75,000 55,000 20,000 Fixed expenses 77,000 38,500 38,500 Operating income (loss) $(2,000) $16,500 $(18,500) If $27,000 of xed costs will be eliminated by discontinuing the Baseball line, how will operating income be affected? 0 A. Decrease $44,500 0 B. Increase $4,000 0 c. Increase $7,000 0 D. Increase $2,000