Percy Production has three models: D, E, and F. The following information is available:

Model D Model E Model F

Sales Revenue $66,000 $34,000 $24,000

Variable Expense $32,000 $13,000 $14,000

Contrib Margin $34,000 $21,000 $10,000

Fixed Expense $18,000 $18,000 $18,000

Operat. Inc. (loss) $16,000 $3,000 -$8,000

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

A. Increase $19,000

B. Increase $8,000

C. Decrease $19,000

D. Decrease $8,000