Rings Company has three product lines, A, B, and C. The following financial information is available: Item Sales Product Line A Product Line B Product Line C $ 48,000 $ 90,000 $21,000 Variable costs $28,800 $48,000 $ 13,125 Contribution margin $19,200 $ 42,000 $7,875 Fixed costs: Avoidable Unavoidable $5,200 $13,500 $5,700 $ 3,900 $9,000 $19,500 $2,900 $ (725) Pre-tax operating income $ 10,100 If Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, pre- tax operating income for the company will likely: O Be unchanged-the two effects cancel each other out. O Increase by some other amount O Increase by $6.525. Increase by $3,825. O Increase by $2,625