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 Total $490,000 359,000 131,000 76,000 $55,000 Luxury $360,000 235,000 125,000 38,000 $87,000 point(s) possible OA. Increase in total operating income of $130,000 OB. Increase in total operating income of $49,000 OC. Decrease in total operating income of $131,000 O D. Decrease in total operating income of $6,000 Sporty $130,000 124,000 6,000 38,000 $(32,000) Fixed expenses Operating income (loss) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income?

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? A. Increase in total operating income of $130,000 B. Increase in total operating income of $49,000 C. Decrease in total operating income of $131,000 D. Decrease in total operating income of $6,000