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 fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?

A) Increase in total operating income of $29,000
B) Increase in total operating income of $125,000
C) Decrease in total operating income of $140,000
D) Decrease in total operating income of $20,000