Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Luxury Sporty Sales revenue $390,000 $130,000 Variable expenses 255,000 120,000 135,000 10,000 Contribution margin Fixed expenses 40,000 40,000 Operating income (loss) $95,000 $(30,000) If $25,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? OA. Increase $145,000 OB. Increase $30,000 OC. Increase $15,000 O D. Decrease $35,000 Total $520,000 375,000 145,000 80,000 $65,000

If \\( \\$ 25,000 \\) of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? A. Increase \\( \\$ 145,000 \\) B. Increase \\( \\$ 30,000 \\) C. Increase \\( \\$ 15,000 \\) D. Decrease \\( \\$ 35,000 \\)