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Nehwal Company makes three types of to-go coffee mugs: 12 oz, 16 oz, and 20 oz. The company is trying to limit the number of

Nehwal Company makes three types of to-go coffee mugs: 12 oz, 16 oz, and 20 oz. The company is trying to limit the number of items it produces and is considering dropping the 16 oz. size. Below is the segment information for the the 16 oz mug.

Sales (1,000 16 oz mugs at $22 per mug) $22,000

Variable expenses $15,000

Fixed expenses $8,000

Of the fixed expenses, only $310 is avoidable if the company discontinued the 16 oz size and the rest are common fixed costs. Assume that discontinuing the 16 oz size has no impact on the other products. If Nehwal Company discontinues the 16 oz size, what is the total increase (decrease) in total operating income?

(Put a - sign in front of your number if it is a decrease in total operating income.)

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