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Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Total Luxury Sporty Sales revenue

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Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Total Luxury Sporty Sales revenue 5520,000 $390,000 $130,000 Variable expenses 355,000 S235,000 120.000 Contribution margin 165,000 155,000 10.000 Fored expenses 81.000 40.500 40.500 Operating income (s) 584 DO 5114 500 530 500) Assuming the Sporty line is discontinued totalfred costs remain unchanged, and the space formerly used to produce the line is rented for $30.000 per year, how will operating income be affected? O A. Increase 5229.000 OB. Increase $104.000 OC. Decrease $20,000 OD. Increase $20.000

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