Carla Vista Joseph, 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 $53000. The fixed expenses charged to the department total $86000. Of the fixed expenses, Joseph estimates that $40000 of those expenses would be eliminated if the department were discontinued. Based on Joseph's analysis, if the department is eliminated, Inca's overall operating income would

decrease by $7000 per year.

increase by $13000 per year.

decrease by $13000 per year.

decrease by $33000 per year.

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