Wind, Inc. has two produWind, Inc. has two product linesfans and air conditioners. The income statement data for the most recent year is as follows:

	Total	Fans	Air Conditioners
Sales revenue	$930,000	$600,000	$330,000
Variable costs	(540,000)	(250,000)	(290,000)
Contribution margin	$390,000	$350,000	$40,000
Allocated fixed costs	(160,000)	(70,000)	(90,000)
Operating income (loss)	$230,000	$280,000	$(50,000)

Assuming the air conditioners line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $100,000 per year, how will operating income be affected?

Select one:

A.Operating income will increase by $60,000.

B.Operating income will decrease by $40,000.

C.Operating income will decrease by $60,000.

D.Operating income will increase by $40,000.