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 O $22,000 $81,000 O $119,000 Sporty O $49,000 $130,000 -120,000 = 10,000 -38,000 Luxury $360,000 -235,000 = 125,000 -38,000 Total =Operating income (loss) =$-28,000 Assuming the Sporty line is discontinued, total fixed costs remain unchanged and will continue, and the space formerly used to produce the line is rented for $32,000 per year, what will be the new net operating income? = $87,000 $490,000 -355,000 =135,000 -76,000 =$59,000

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Assuming the Sporty line is discontinued, total fixed costs remain unchanged and will continue, and the space formerly used t produce the line is rented for $32,000 per year, what will be the new net operating income? $22,000 $81,000 $119,000 $49,000