Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total 5510,000 365.000 145.000 80 000 $65.000 Luxury $380,000 245,000 135,000 40000 $95.000 Sporty $130.000 120.000 10.000 40000 $130,000) 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 $257,500 OB. Increase $337,500 OC. Increase $192,500 OD. Decrease $192,500 J&A Corporation has a monthly target operating income of $35,700. Variable expenses are 30% of sales and monthly fixed expenses are $13,300. What is the monthly margin of safety as a percentage of target sales in dollars? O A. 26.84% OB. 72.86% O C. 13.73% OD. 70%