A company has two different products that are sold in different markets. Financial data are as follows:

Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company?

A) Increase $2,000

B) Increase $300

C) Decrease $2,000

D) Decrease $300

Revenue Variable cost Fixed cost (allocated) Operating income Product A Product B Total $15,000 $9,500 $24,500 (9,000) (9,800) (18,800) (3,000) (2,000) (5,000) $3.000 ($2,300) $700