Carter Corporation is considering eliminating one product line because of losses over the past year. The information is summarized below:

Sales units $,$$$300,000$

Direct materials $150,000$

Direct labor $60,000$

Variable overhead $80,000$

Fixed overhead

$30,000$

Operating loss

$(20,000)$

If the company drops the product line, operating income will

decrease by $$20,000$

increase by $$10,000$

decrease by $$10,000$

increase by $$30,000$