Lawler Manufacturing Co. has three divisions which are in competition with each other, selling slightly different products. Annual results (including per unit sales) show: Division A Division B Division C Sales 6,000@$18 10,000@$15 14,000@$12 Var. cost $8 per unit $6 per unit $8 per unit Fixed cost $11,000 $48,000 $15,000 The company believes that if it drops Division B, sales of Division A will increase by 2000 units and sales of Division C will increase by 3000 units. Analysis reveals that $32,000 of fixed costs relating to Division B are avoidable for the company if Division B is closed. The incremental effect on the income of the company if it closes Division B will be:

Select one: a. A decrease of $90,000 b. A decrease of $58,000 c. A decrease of $20,000 d. An increase of $32,000 e. A decrease of $26,000