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 Luxury Sporty $490,000.00 $360,000.00 $130,000.00 375000 255000 115000 105000 76000 38000 $39,000.00 $67,000.00 120000 10000 38000 -$28,000.00 If $22,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? A) Decrease $32,000 B) Increase $12,000 C) Increase $7000 D) Increase $90,000 T

If $22,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? A) Decrease $32,000 8) Increase $12,000 C) Increase $7000 D) Increase $90,000