if the mountain bike line is dropped, operating income would increase or decrease by ____

Canadian Cycle sells a variety of bicycles: Comfort, Road, and Mountain bikes. Sales of the Mountain bikes have fallen off. The following information is available: Comfort Road Mountain Sales revenue $225,000 $975,000 $237,500 Variable costs $112,500 $600,000 $200,000 Fixed costs $50,000 $210,000 $43,500 Operating income $62,500 $165,000 -$6,000 If the Mountain bike line is dropped, the $43,500 of fixed cost is avoidable. Calculate the impact on operating income if the Mountain bike line is dropped and answer the following questions. If the Mountain bike line is dropped, operating income would Input the word INCR for increase or DECR for decrease. by $ Indicate the dollar amount of the increase or decrease. Input your answer as a positive number. A/ Page 7 of 13