Get Ya Head in the Game, Inc. manufactures basketballs. The company produces two products: Troy and Gabriella. The following annual operating information is available for each product line: Troy Gabriella Contribution Margin $30,000 $15,000 Traceable Fixed Expenses (5,000) (11,000) Segment Margin $25,000 $4,000 Allocated Common Fixed Costs (5,000) (5,000) Operating Income (Loss) $20,000 ($1,000) Assume that Gabriella can be replaced with Chad. The Chad product line is expected to generate a segment margin of $12,000. However, if this change is made, Troy's sales volume is expected to decrease by 5%. What would be the company's new operating income if Gabriella is dropped and replaced with Chad? $35,500 $25,500 $25,750 $30,750 $33,500