A company is considering discontinuing one of its product lines. This product line generates a contribution margin of $290,000 per year. Fixed expenses allocated to the product line are $380,000 per year. It is estimated that $235,000 of these fixed expenses could be eliminated if the product line is discontinued.

Based on this data, if the product line is discontinued, the companys overall net operating income would:

A) decrease by $145,000 per year

B) increase by $145,000 per year

C) increase by $55,000 per year

D) decrease by $55,000 per year