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 $490,000 359,000 131,000 76,000 $55,000 Luxury $360,000 235,000 125,000 38,000 $87,000 Sporty $130,000 124.000 6,000 38,000 $(32,000) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? O A. Increase in total operating income of $49,000 OB. Decrease in total operating income of $6,000 O C. Decrease in total operating income of $131,000 OD. Increase in total operating income of $130,000 Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: Sales price Variable costs Food Processors Espresso Makers $165 $235 $60 $150 The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,500 machine hours per month. To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)? O A. 3,000 Food Processors and 0 Espresso Machines OB. 4,500 Espresso Machines and 0 Food Processors O C. 210 Food Processors and 255 Espresso Machines OD 3,000 Food Processors and 4,500 Espresso Machines