Rockhampton Company has three products, X, Y and Z. The following information is available:

Product XProduct YProduct Z

Sales$60000$90000$24 000

Variablecosts36 00048 00015 000

Contributionmargin24000420009000

Fixed costs:

Avoidable9000180006000

Unavoidable600090005400

Operatingprofit$9000$15 000$(2400)

Assuming Product Z is discontinued and space formerly used to produce Product Z is rented for $12 000 per year, operating profit will:

A.increase by $6600.

B.increase by $14 400.

C.increase by $12 000.

D.increase by $9000.