Giant Company has three products, A, B, and C. The following information is available:

	Cookbook	Travel Book	Classics
Sales	$ 63 comma 000$63,000	$ 97 comma 000$97,000	$ 22 comma 000$22,000
Variable costs	40 comma 00040,000	49 comma 00049,000	13 comma 00013,000
Contribution margin	23 comma 00023,000	48 comma 00048,000	9 comma 0009,000
Fixed costs:
Avoidable	7 comma 0007,000	19 comma 00019,000	3 comma 0003,000
Unavoidable	7 comma 0007,000	11 comma 00011,000	9 comma 4009,400
Operating income	$ 9 comma 000$9,000	$ 18 comma 000$18,000	$(3 comma 4003,400)

Giant Company is thinking of dropping Product C because it is reporting a loss. Assuming Giant drops Product C and does NOT replace it, operating income will ________.

A.

decrease by $ 6 comma 000$6,000

B.

decrease by $ 12 comma 400$12,400

C.increase by

$ 3 comma 000$3,000

D.increase by

$ 3 comma 400$3,400