Jim Bean Company has three product lines: D, E, and F. The following information is available:

	D	E	F
Sales revenue	$80,000	$42,000	$20,000
Variable expenses	$40,000	$21,000	$12,000
Contribution margin	$40,000	$21,000	$ 8,000
Fixed expenses	$12,000	$15,000	$17,000
Operating income (loss)	$28,000	$6,000	$(9,000)

Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed expenses are unavoidable.

Assuming Jim Bean Company discontinues product line F and does not replace it, what affect will this have on operating income? (Specify increase/decrease, and the amount)

Jim Bean Company discontinues product line F and rents the space formerly used to produce product F for $20,000 per year, what affect will this have on operating income? (Specify increase/decrease, and the amount)

Assuming Jim Bean Company discontinues line F and is able to double the production and sales of product line E without increasing fixed costs. What affect will this have on operating income? (Specify increase/decrease, and the amount)