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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 $530,000 $400,000 $130,000 Variable expenses 365.000 $245.000 120.000 Contribution margin 165,000 155,000 10,000 Fixed expenses 80.000 40.000 40.000 Operating income (loss) $85.000 $115.000 $(30,000) Assuming the Sporty line is discontinued, total fixed 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 $230,000 OB. Decrease $20,000 OC. Increase $105,000 OD. Increase $20,000

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