Kona Footwear is contemplating if it should continue producing sandals. The following information is available for the company's segments.

Sandals Slippers Boots

Sales $120,000 $420,000 $360,000

Variable costs 64,000 220,000 140,000

Contribution margin 56,000 200,000 220,000

Direct fixed costs 45,000 70,000 90,000

Allocated fixed costs 20,000 70,000 60,000

Net income ($ 9,000) $ 60,000 $ 70,000

If sandals are dropped, sales of slippers are expected to drop by 10%. What impact will occur to Kona Footwear's net income?

A) Income will decrease by $11,000.

B) Income will decrease by $31,000.

C) Income will decrease by $53,000.

D) Income will increase by $9,000.