Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follows:
---------------Total/Hiking/Fashion----------
Sales revenue->$530,000/$390,000/$140,000
Variable expenses->365,000/245,000/120,000
Contribution margin->165,000/145,000/20,000
Fixed expenses->77,000/38,500/38,500
OP income(loss)->$88,000/$106,500/$(18,500)
Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $29,000 per year, how will operating income be affected?
A. Decrease $9,000
B. Increase $9,000
C. Increase $185,000
D. Increase $97,000