- Target Corporation two product lines: Economy and Luxury shoes. Income statement data for the most recent year follow: Luxury Sales revenue $ 140,000 Variable expenses 120,000 Contribution margin 20,000 Fixed expenses _8,500 Operating income (loss) $,000 $500 _$_(,m)_ The division for Luxury shoes is closed. None of the xed costs are avoidable, and the available space is used to increase the production of Economy shoes by 250%, how will operating income be affected? Increase $92,500 Increase $265,000 Decrease $92,500 Increase $110,500