Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

Total Cups Pitchers

Sales revenue $460,000 $310,000 $150,000

Variable expenses 355,000 235,000 120,000

Contribution margin 105,000 75,000 30,000

Fixed expenses 76,000 38,000 38,000

Operating income (loss)$29,000 $37,000 $(8,000)

Assuming the Pitcher line at Pottery Unlimited is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $45,000 per year, how will operating income be affected?

Options:

Decrease $15,000

Increase $45,000

Increase $44,000

Increase $15,000