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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 revenue

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

350,000

235,000

115,000

Contribution margin

140,000

125,000

15,000

Fixed expenses

76,000

38,000

38,000

Operating income (loss)

$64,000

$87,000

$(23,000)

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

A. Increase in total operating income of $130,000

B. Decrease in total operating income of $140,000

C. Decrease in total operating income of $15,000

D. Increase in total operating income of $ 49,000

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