Meditate to Elevate is a wholesaler of gear to yoga studios. The company sells three product lines: Ujjayi, Drishti, and Tapas. A traditional departmental income statement for the year ended 12.31.20 is shown below: Drishti Sales Revenue (Cost of Goods Sold) Gross Profit (Operating Expenses) Operating Income Ujjayi $80,000 (65,000) 15,000 .(20,000) $(5,000) $30,000 (9,000) 21,000 (15,000) $6,000 Tapas $37,500 (20,250) 17,250 (7,375) $9,875 40% of the cost of goods sold for each product line is variable. The remaining cost of goods sold for each product line consists of traceable fixed costs. The operating expenses for each product line include $6,000 of common fixed costs. The remaining operating expenses consist of traceable fixed costs. Due to profitability concerns, management is considering dropping the Ujjayi product line. If Ujjayi is dropped, the freed up capacity would be used to expand Tapas's operations. As a result, Tapas's sales volume would increase by 10%, and its traceable fixed costs would increase by $2,000 due to the cost of expansion. The loss of Ujjayi and the expansion of Tapas would result in a 5% decrease in Drishti's sales volume. What would be the annual change in operating income if Ujjayi is dropped? A. decrease of $1,380.00 B. decrease of $5,442.50 C. increase of $3,987.50 D. increase of $4,620.00 E. increase of $15,987.50