Able Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $16 and has a contribution margin of $5. If product X is discontinued, $66,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Able Company's other products. If product X is discontinued, Able Company's monthly income before taxes should:

Answer

		A) Increase by $100,000.
		B) Increase by $34,000.
		C) Decrease by $100,000.
		D) Decrease by $34,000.