Melting Wax is a manufacturer of three types of candles: Pillars, Tapers, and Votives. A traditional departmental income statement for the yearjust ended is shown below: Pillars Tapers Votives Sales Revenue $40,000 $15,000 $18,750 (Cost of Goods Sold) (32,5001 {4,5001 11 0,1201 Gross Profit 7,500 10,500 8,630 (Operating Expenses) (10,000) (7,500) 13,680) Operating Income $(2,500) $3,000 $4,950 30% 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 xed costs. The operating expenses for each product line include $2,000 of common fixed costs. The remaining operating expenses consist of variable costs. Due to profitability concerns, management is considering dropping the Pillars product line. If Pillars is dropped, the freed up capacity would be used to expand Votive's operations. As a result, Votive's sales volume would increase by 15%, and its traceable xed costs would increase by $2,200 due to the cost of expansion. The loss of Pillars and the expansion of Votives would result in a 5% increase in Tapers' sales volume. What would be the increase in operating income if Pillars is dropped? A. $1 ,697.60 B. $2,512.60 C. $812.60 D. $3,039.60 E. None of the above