Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $520,000 and have traceable fixed operating costs of $550,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $450,000 and Ortega's income will:

increase by $30,000.

increase by $70,000.

increase by $420,000.

decrease by $70,000.

decrease by $420,000.