ABC Company has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would:

a. none of answers are correct

b. decrease by $20,000 per year

c. decrease by $10,000 per year

d. increase by $20,000 per year