A company is considering closing one of its product lines. Current data on

the product line are as follows:

The direct avoidable fixed costs will be eliminated if the product line is closed.

The indirect allocated fixed costs will remain the same whether the product line

is continued or closed.

By how much will overall company net income change if this company decides

to discontinue this product line?

It will increase by $$2,000.$

It will decrease by $$2,000.$

It will increase by $$4,000.$

It will decrease by $$4,000.$