Coating Inc. produces adult jackets and children's jackets. Contribution margin income statement data for the most recent year follow:

	Total	Adult jackets	Children's jackets
Sales revenue	$353,000	$275,000	$78,000
Variable expenses	$210,000	$165,000	$45,000
Contribution margin	$143,000	$110,000	$33,000
Fixed expenses	$98,000	$50,000	$48,000
Operating income (loss)	$45,000	$60,000	($15,000)

The company is considering whether or not to drop the children's jackets line. Assume total fixed costs will remain unchanged and the space formerly used to produce children's jackets can be rented for $40,000 per year.

1. Indicate whether the company's operating income will increase or decrease if it drops the children's jackets line.

2. How much is the increase/decrease? Only input the dollar amount

3. Should the company drop the children's jackets line or not?