A company has three product lines, one of which reflects the following results: Sales $232000 Variable expenses 133000 Contribution margin 99000 Fixed expenses 130000 Net loss $ (31000) If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the companys net income will

A. increase by $21000.

B. increase by $31000.

C. decrease by $99000.

D. decrease by $21000.