The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Toaster $650,000 $490,000 $160,000 $90,000 $70,000 Microwave $255,000 $210,000 $45,000 $90,000 $(45,000) Total $905,000 $700,000 $205,000 $180,000 $25,000 If Germain Appliances can eliminate fixed costs of $33,000 by discontinuing the Microwave line, then discontinuing it should result in which of the following? O A. Increase in total operating income of $12,000 OB. Decrease in total operating income of $25,000 O C. Increase in total operating income of $25,000 OD. Decrease in total operating income of $12,000 Percy Productions has three models: D, E, and F. The following information is available: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Model D $65,000 $32,000 $33,000 $16,000 $17,000 Model E $33,000 $13,000 $20.000 $16.000 $4,000 Model F $24,000 $14,000 $10,000 $16.000 $(6,000) Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Percy Productions discontinues model F and rents the space formerly used to produce product F for $15,000 per year, what effect will this have on operating income? A. Decrease $5,000 OB. Decrease $20,000 OC. Increase $5,000 OD. Increase $20,000