The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows:

Curling Irons Straighteners Total
Sales revenue $600,000 $260,000 $860,000
Variable expenses $450,000 $210,000 $660,000
Contribution margin $150,000 $50,000 $200,000
Fixed expenses $75,000 $75,000 $150,000
Operating income (loss) $75,000 $(25,000 ) $50,000

If fixed costs remain unchanged and Lovely Locks discontinues the Straightener line, how will operating income change?

A) Will decrease by $150,000
B) Will increase by $50,000
C) Will increase by $150,000
D) Will decrease by $50,000

D
Explanation: D)