Garrett Company provided the following information:

Product 1Product 2Units sold10,00020,000Price$20$15Variable cost per unit$10$10Direct fixed cost$35,000$75,000Common fixed cost totaled $46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true?

a.Sales will increase by $300,000.

b.Overall operating income will increase by $2,600.

c.Overall operating income will decrease by $25,000.

d.Overall operating income will not change.

e.Common fixed cost will decrease by $27,600.