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 Fashion line is used to increase the production of Hiking boots by 250%,how will operating income be affected?

A) Increase $137,500
B) Increase $235,500
C) Increase $186,500
D) Decrease $137,500