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Question Help Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Total Luxury Sporty

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Question Help Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Total Luxury Sporty Sales revenue $530,000 $400,000 $130,000 Variable expenses 375,000 255,000 120,000 Contrbution margin 155,000 145.000 10.000 Fored expenses 70.000 38.000 38.000 Operating income (ons) $79.000 $107.000 $28.000) Assuming the Sporty line is decontinued total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected? ar Ere sto OA Increase $207,500 OB. Increase $362,500 OG. Decrease $207,500 OD. Increase $206,500 ist ther pone 2.000 000)

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