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

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 $490,000 $360,000 $130,000
Variable expenses 359,000 235,000 124,000
Contribution margin 131,000 125,000 6000
Fixed expenses 76,000 38,000 38,000
Operating income (loss) $55,000 $87,000 -$32,000

Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income?

Increase in total operating income of $49,000

Decrease in total operating income of $6000

Increase in total operating income of $130,000

Decrease in total operating income of $131,000

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