The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows:

	Toaster	Microwave	Total
Sales revenue	$ 650 comma 000$650,000	$255,000	$ 905 comma 000$905,000
Variable expenses	$ 490 comma 000$490,000	$210,000	$ 700 comma 000$700,000
Contribution margin	$ 160 comma 000$160,000	$45,000	$ 205 comma 000$205,000
Fixed expenses	$ 75 comma 000$75,000	$ 75 comma 000$75,000	$ 150 comma 000$150,000
Operating income (loss)	$ 85 comma 000$85,000	$( 30 comma 000 )$(30,000)	$ 55 comma 000$55,000

If fixed costs remain unchanged and Germain Appliances discontinues the Microwave line, how will operating income change?

A.

Will increase by $ 45 comma 000$45,000

B.

Will increase by $ 150 comma 000$150,000

C.

Will decrease by $ 150 comma 000$150,000

D.

Will decrease by $ 45 comma 000$45,000