A company produces two products: X and O. Shown below is an income statement for the company in total and for each product.

	Total	X	O
Sales	$1000	$750	$250
Cost of material and labor	400	250	150
Salesmen Commissions	100	60	40
Rent on factory	200	150	50
Rent on office	100	70	30
Net income or (Loss)	$200	$220	$(20)

The company is considering dropping product O because it appears to be losing money. If product O is dropped:

A. Will the companys net income increase or decrease? ____________

B. By what amount will income increase or decrease? _______________