Pet Pals has two product lines: dog houses & dog toys. Income statement data for the most recent year follows:

Total Dog Houses Dog Toys

Sales $$1,026,000$ $$840,000$ $$186,000$

Variable Costs $$456,000$ $$336,000$ $$120,000$

Contribution Margin $$570,000$ $$504,000$ $$66,000$

Fixed Costs $$190,000$ $$95,000$ $$95,000$

Operating Income $($Loss$)$ $$380,000$ $$409,000$ $ $(29,000)$

Assuming the Dog Toys line is discontinued, total fixed costs decrease by $$50,000,$ and the space formerly used to produce the line is rented for $$12,000$ per year, operating income will

by

$.($Your first blank should contain the word "increase" or "decrease" and the second blank should contain the dollar amount.$)$