Pharoah Toys management is considering eliminating product A, which has been showing a loss for several years. The companys annual income statement, is as follows:

Sales		$2,295,000		$1,408,000		$1,813,500		$5,516,500

Variable expenses		1,608,000		601,300		1,099,100		3,308,400

Contribution margin		$687,000		$806,700		$714,400		$2,208,100

Advertising expense		$611,000		$430,000		$520,000		$1,561,000
Depreciation expense		16,500		10,300		20,400		47,200
Corporate expenses		90,800		80,500		105,700		277,000

Total fixed expenses		$718,300		$520,800		$646,100		$1,885,200
Operating income		$(31,300)		$285,900		$68,300		$322,900

Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees.

What would be the effect on income if product A were dropped?

select an option increasedecreaseenter a dollar amount