Mission Company has three product lines: D, E, and F. The following information is available:

D

E

F

Sales revenue

$

84,000

$45,000

$ 20,000

Variable expenses

$

44,000

$26,000

$ 12,000

Contribution margin

$

40,000

$19,000

$

8,000

Fixed expenses

$

12,000

$15,000

$17,000

Operating income (loss)

$

28,000

$4000

$(9,000)

Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Mission Company discontinues product line F and rents the space formerly used to produce product F for $18,000 per year, what affect will this have on operating income?

		Increase $27,000
		Decrease $10,000
		Increase $10,000
		Increase $33,000