please answer do not image format Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow:TotalSporty$530,000$130,000355,000120,00010,000175,00080,00040,000$95,000$(30,000)Sales revenueVariable expensesContribution marginFixed expensesOperating income (loss)A. Decrease $237,500B. Increase $332,500OC. Increase $412,500OD. Increase $237,500Luxury$400,000Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%.how will operating income be affected?0000235,000165,00040,000$125,000

CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…

Vestfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sporty $130,000 120,000 10,000 40,000 $(30,000) Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) 0 0 0 A. Decrease $237,500 Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%. how will operating income be affected? OB. Increase $332,500 OC. Increase $412,500 OD. Increase $237,500 Total $530,000 355,000 + 175,000 80,000 $95,000 Luxury $400,000 235,000 165,000 40,000 $125,000 CES