Diamond Company has three product lines, A, B, and C. The following financial information is available

Item	Product Line A	Product Line B	Product Line C
Sales	$30,000	$45,000	$12,000
Variable costs	$18,000	$24,000	$7,500
Contribution margin	$12,000	$21,000	$4,500
Fixed costs:
Avoidable	$4,500	$9,000	$3,000
Unavoidable	$3,000	$4,500	$2,000
Operating income	$4,500	$7,500	($500)

Diamond is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, operating income for the firm will likely:

Be unchanged

Increase by $1,200

Increase by $1,500

Decrease by $1,500

Decrease by $2,700