One of Simplex Companys product lines has a contribution margin of $50,000 and fixed costs totaling $50,000. If the product line is dropped, $40,000 of the fixed costs will continue unchanged. As a result of dropping the product line, the companys net income should

A. decrease by $50,000 per period

B. increase by $30,000 each period

C. decrease by $30,000 each period

D. increase by $10,000 each period

E. none of these