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 $510,000 $380,000 $130,000 Variable expenses 355,000 235,000 120,000 Contribution margin 155,000 145,000 10,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $79,000 $107,000 $(28,000) Assuming the Sporty line is discontinued, 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? O A. Increase $207,500 B. Decrease $207,500 OC. Increase $362,500 OD. Increase $286,500