Pottery Unlimited Has Two Product Lines: Cups and Pitchers -Assuming the Pitcher Line Is Dropped,total Fixed Costs Remain Unchanged,and

Pottery Unlimited has two product lines: cups and pitchers.Income statement data for the most recent year follow: $\begin{array}{|l|r|r|r|}\hline & \text { Total } & \text { Cups } & \text { Pitchers } \\\hline \text { Sales revenue } & \$ 460,000 & \$ 310,000 & \$ 150,000 \\\hline \text { Variable expenses } & \underline{355,000} & \underline{235,000} & \underline{120,000} \\\hline \text { Contribution margin } & 105,000 & 75,000 & 30,000 \\\hline \text { Fixed expenses } & \underline{76,000} & \underline{38,000} & \underline{38,000} \\\hline \text { Operating income (loss) } & \$ 29,000 & \$ 37,000 & \$(8,000) \\\hline\end{array}$

-Assuming the Pitcher line is dropped,total fixed costs remain unchanged,and the space formerly used to produce the Pitcher line is used to double the production of Cups,how will operating income be affected?

A) Increase $103,000
B) Increase $45,000
C) Increase $74,000
D) Decrease $45,000