Mission Company has three productlines: D,E, and F. The following information isavailable:

D

E

F

Sales revenue

$84,000

$45,000

$ 20,000

Variable expenses

$42,000

$25,000

$12,000

$42,000

$20,000

$ 8,000

Fixed expenses

$12,000

$15,000

$17,000

Operating income(loss)

$30,000

$5,000

$(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 $22,000 peryear, what affect will this have on operatingincome?

A.

Increase $40,000

B.

Increase $31,000

C.

Decrease $14,000

D.

Increase