Bubblemania has three product lines-A,B, and C. Product line B appears to be unprofitable, and management is considering discontinuing the line. Based on the information below, how would the discontinuation of Product line B affect net income?

A B C Total

Sales $ 10,000 $ 9,000 $ 12,000 $ 31,000

Variable Costs $ 4,500 $ 7,000 $ 6,000 $ 17,500

Contribution Margin $ 5,500 $ 2,000 $ 6,000 $ 13,500

Fixed Costs $ 3,500 $ 6,000 $ 3,000 $ 12,500

Net Income $ 2,000 $ (4,000) $ 3,000 $ 1,000