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Firm A has three product lines with the following revenues and expenses: A B C Sales revenue $80,000 $42,000 $60,000 Variable expenses $65,000 $21,000 $12,000

Firm A has three product lines with the following revenues and expenses:

A

B

C

Sales revenue

$80,000

$42,000

$60,000

Variable expenses

$65,000

$21,000

$12,000

Contribution margin

$15,000

$21,000

$48,000

Fixed expenses

$19,000

$15,000

$17,000

Operating income(loss)

($4,000)

$6,000

$31,000

All fixed expenses are unavoidable. What is the effect on operating income of discontinuing product line A?

Group of answer choices

Decrease $15,000

Increase $19,000

Increase $15,000

Increase $4,000

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