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Benace Parts and Supply makes a variety of car parts. The company produces 6,500 A90 parts each year. Each A90 sells for $9 and has
Benace Parts and Supply makes a variety of car parts. The company produces 6,500 A90 parts each year. Each A90 sells for $9 and has a contribution margin of $4. Currently, $16,500 of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, $7,500 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued? O A. Increase in total operating income of $18,500 OB. Decrease in total operating income of $18,500 O c. Decrease in total operating income of $17,000 OD. Increase in total operating income of $17,000
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