Haloid manufactures two products: Regular and Super. The results of operations for 20x1 follow. Regular Super Total Units 10,000 3,700 13,700 Sales $240,000 $740,000 $980,000 Less: Cost of goods sold 180,000 481,000 661,000 Gross margin $60,000 $259,000 $319,000 Less: Selling expenses 60,000 134,000 194,000 Operating income $ 0 $125,000 $125,000 Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed. Total manufacturing and selling fixed cost for both products is $184,000. 3. Haloid wants to drop the Regular product line. If the line is dropped, company-wide fixed manufacturing costs would fall by 10% because there is no alternative use of the facilities. What would be the impact on operating income if Regular is discontinued? A) $0. B) $10,400 increase. C) $20,000 increase. D) $31,600 decrease. E) None of the above