Donnelly Company has three products, R2, R4, and R2D2. The following information is available:

Product R2 Product R4 Product R2D2 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 2,700 Operating income $4,500 $7,500 $ (1,200) Assuming Product R2D2 is discontinued and the space formerly used to produce the product is rented out for $6,000 per year, operating income will:

Group of answer choices

increase by $4,500.

increase by $7,200.

increase by $3,300.

increase by $6,000.