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Licuado Juice Company has four product lines: Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line: .........................................................Orange..............Tomato.........Carrot.............Grape sales

Licuado Juice Company has four product lines: Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line:

.........................................................Orange..............Tomato.........Carrot.............Grape

sales $ 60,000 $ 32,000 $ 24,000 $ 44,000
variable expenses 22800 11200 12000 17600
contribution margin 37,200 20,800 12,000 26,400
traceable fixed expenses 12000 8000 9000 6600
segment margin $ 25,200 $ 12,800 $ 3,000 $ 19,800

Net operating income last year for Licuado Juice Company as a whole was $ 24,800

If the Tomato product line would have been dropped at the beginning of last year, how would this have changed the net operating income of Licuado Juice Company as a whole?

a) $ 2,400 increase

b) $ 12,000 decrease

c) $ 5,400 increase

d) $ 12,800 decrease

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