HiTech manufactures two products: Regular and Super. The results of operations for 20x1 follow.

RegularSuperTotalUnits13,0004,20017,200Sales$338,000$840,000$1,178,000Less: Cost of goods sold273,000504,000777,000Gross margin$65,000$336,000$401,000Less: Selling expenses65,000190,000255,000Operating income$0$146,000$146,000

Fixed manufacturing costs included in cost of goods sold amount to $2 per unit for Regular and $30 per unit for Super. Variable selling expenses are $3 per unit for Regular and $30 per unit for Super? remaining selling amounts are fixed.

HiTech 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?

Group of answer choices

$36,800 decrease.

$0.

$15,200 increase.

$26,000 increase.

None of these.

(Also attached the photo below)

HiTech manufactures two products: Regular and Super. The results of operations for 20x1 follow. Regular Super Total Units 13,000 4,200 17,200 Sales $338,000 $840,000 $1,178,000 Less: Cost of goods sold 273,000 504,000 777,000 Gross margin $65,000 $336,000 $401,000 Less: Selling expenses 65,000 190,000 255,000 Operating income $0 $146,000 $146,000 Fixed manufacturing costs included in cost of goods sold amount to $2 per unit for Regular and $30 per unit for Super. Variable selling expenses are $3 per unit for Regular and $30 per unit for Super; remaining selling amounts are fixed. HiTech 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? $36,800 decrease. O $0. $15,200 increase. $26,000 increase. None of these