Dunder Ltd. has two product lines, H and G. The following information is available:

H

G

Sales

$8535

$14825

Variable costs

5177

8228

Contribution margin

3358

6597

Fixed costs:

Avoidable

2370

2800

Unavoidable

1974

2000

Operating Income

$-986

$1797

Dunder Ltd. is considering discontinuing product line H. This would increase sales of product line G by 37% without increasing fixed costs. If the company does decide to discontinue product line H, operating income will increase (decrease) by:

Select one:

a.$-917

b.$-2891

c.$4497

d.$1453