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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

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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 $490,000 354,000 136,000 76,000 $60,000 Luxury $360,000 235,000 125,000 38,000 $87,000 Sporty $130,000 119,000 11,000 38,000 $(27,000) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? O A. Increase in total operating income of $130,000 OB. Decrease in total operating income of $136,000 O C. Increase in total operating income of $49.000 O D. Decrease in total operating income of 511,000

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