Richard Inc. manufactures three products, A, B, and C. Data regarding the company's sales and costs are as follows:

Item	Product Line A				Product Line B				Product Line C
Sales	$	38,000			$	65,000			$	16,000
Variable costs	$	22,800			$	35,000			$	10,000
Contribution margin	$	15,200			$	30,000			$	6,000
Fixed costs:
Avoidable	$	4,700			$	11,000			$	4,200
Unavoidable	$	3,400			$	6,500			$	2,400
Pre-tax operating income	$	7,100			$	12,500			$	(-600	)

Richard is considering dropping Product C due to the operating loss. Assume Richard does not replace Product C after dropping it, the company's total pre-tax operating income will likely:

Multiple Choice

• Decrease by $1,800

• Decrease by $3,300

• Increase by $1,800

• Be unchanged

• Increase by $1,500