Garrett Company provided the following information:

Common fixed cost totaled $46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true?
a. Sales will increase by $300,000.
b. Overall operating income will increase by $2,600.
c. Overall operating income will decrease by $25,000.
d. Overall operating income will not change.
e. Common fixed cost will decrease by $27,600.

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Units sold Price Variable cost per unit Direct fixed cost Product 1 10,000 $20 $10 $35,000 Product 2 20,000 $15 $10 $75,000