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All about two product lines: Product X and Product D. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses

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All about two product lines: Product X and Product D. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $385,000 $205,000 $180,000 $102,000 $78,000 Product D $85,000 $40,000 $45,000 $52,000 $(7,000) Product X $300,000 $165,000 $135,000 $50,000 $85,000 If $12,000 of fixed costs will be eliminated by discontinuing the Product D line, how will operating income be affected? Note: if Operating income will increase for example by $3,000, write 3000; if operating income will decrease by $3,000, write -3000

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