Carla Vista Brian, the controller of Inca Industries, has prepared an analysis to help management determine whether one of Inca's departments should be eliminated. The department's contribution margin is $64000. The fixed expenses charged to the department total $91000. Of the fixed expenses, Brian estimates that $44000 of those expenses would be eliminated if the department were discontinued. Based on Brian's analysis, if the department is eliminated, Inca's overall operating income would

Answer is:

decrease by $20000 per year.

decrease by $17000 per year.

decrease by $27000 per year.

increase by $20000 per year.