10. HiTech manufactures two products: Regular and Super. The results of operations for 20x1 follow.

	Regular	Super	Total
Units	14,000	4,000	18,000
Sales	$448,000	$840,000	$1,288,000
Less: Cost of goods sold	364,000	520,000	884,000
Gross margin	$84,000	$320,000	$404,000
Less: Selling expenses	84,000	178,000	262,000
Operating income	$0	$142,000	$142,000

Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed. HiTech wants to drop the Regular product line. If the line is dropped, company-wide fixed manufacturing costs would fall by 20% because there is no alternative use of the facilities. What would be the impact on operating income if Regular is discontinued?

$0.

$24,400 increase.

$28,000 increase.

$45,600 decrease.

None of these.