A retail furniture company currently sells products in four categories: recliners, sofas, dining sets, and patio. Due to recent poor performance, the company is considering eliminating the patio furniture line. Recliners Sofas Dining Patio Sales $500,000 $700,000 $900,000 $400,000 Variable expenses 200,000 375,000 405,000 330,000 Allocated fixed expenses 200,000 280,000 360,000 160,000 Operating income $100,000 $ 45,000 $135,000 $ (90,000) If patio furniture is eliminated, 80% of the fixed costs assigned to the product line could be avoided. The company does experience cross-sales opportunities and estimates eliminating the patio furniture will lead to a 5% decrease in unit sales of each of the other three product lines. The company should A. Eliminate the patio furniture line, which will increase the companys operating income by $2,000. B. Eliminate the patio furniture line, which will increase the companys operating income by $38,000. C. Keep the patio furniture line because eliminating it will decrease the companys operating income by $67,000. D. Keep the patio furniture line because eliminating it will decrease the companys operating income by $94,000