Boots Plus Has Two Product Lines: Hiking Boots and Fashion

Multiple Choice

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Assuming the Fashion 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?

A) Decrease $10,000
B) Increase $59,000
C) Increase $10,000
D) Increase $162,000