I compute the answer to this question to be a $5000 increase, but I want a second opinion.

Note: I think there are some errors in how the question is phrased. I believe the $240000 should be next to the Sales Commision and the Operating Income should be negative.

Bingham Company manufactures and sells Product J. Results for last year for the manufacture and sale of Product J are as follows:

Sales (10,000 units at $160 each) $1,600,000

Less: Costs; $960,000

Variable Production Costs $240,000

Sales Commisions -15% of Sales $195,000

Salaries of Line Supervisors $180,000

Traceable Fixed Factory Overhead (Allocated to product on the Basis of Square Meters Occupied) $170,000

Total Cost $1,745,000

Operating Income (Loss) $145,000

Bingham Company anticipates no change in the operating result for Product J in the foreseeable future if the product is produced. Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product J. The company's total fixed factory overhead cost would not be affected by this decision.

Assume that discontinuing Product J would result in a $30,000 increase in the contribution margin of other product lines. If Bingham chooses to discontinue Product J, what will be the change in operating income next year due to this action?