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The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: Curling Irons Straighteners Total Sales revenue

The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows:

Curling Irons Straighteners Total
Sales revenue $650,000 $260,000 $910,000
Variable expenses $490,000 $210,000 $700,000
Contribution margin $160,000 $50,000 $210,000
Fixed expenses $90,000 $90,000 $180,000
Operating income (loss) $70,000 -$40,000 $30,000

If Lovely Locks can eliminate fixed costs of $33,000 and increase the sale of Curling Irons by 6500 units at a selling price of $33 per unit and a contribution margin of $11 per unit, then discontinuing the Straighteners should result in which of the following?

Decrease in total operating income of $54,500

Increase in total operating income of $84,500

Decrease in total operating income of $84,500

Increase in total operating income of $54,500

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