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Big Fish Rod Company makes fly fishing rods in three sizes: B.foot, 9-foot, and 10 foot. 10-foot rods have shown a loss for several years,

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Big Fish Rod Company makes fly fishing rods in three sizes: B.foot, 9-foot, and 10 foot. 10-foot rods have shown a loss for several years, and, as a result, Big Fish is considering eliminating the 10-foot fly rod. Big Fish provides the following operating data for the past year 8-foot rod 9-foot rod 10-foot rod Sales $350,000 $250.000 $150,000 Variable Costs 200,000 150,000 105,000 Contribution Margin 150,000 100,000 45,000 Fixed Costs 90,000 90,000 90,000 Net Operating Income $60,000 $10,000 ($45,000) of the $90,000 of fixed costs for each rod. $50,000 is traceable to the rod, and $40,000 would be reallocated if the rod were to be eliminated. What would be the effect on the company's overall net operating income if the 10-foot rod is eliminated? O Increase by $5,000 O Increase by $45,000 O Decrease by $5,000 O Decrease by $45,000

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