Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Nariable expenses Contribution margin Fixed expenses Operating income Kloss) Total $480,000 355,000 125,000 80,000 Luxury $350,000 235,000 115,000 40,000 $75,000 Sporty $130,000 120,000 10,000 40,000 $(30,000) $45,000 Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected? Increase $162,500 Decrease $162,500 Increase $287,500 Increase $207,500