ROY Company has three product lines in its retail stores: W101, W200, and W250. Results of the fourth quarter are presented below: W250 W200 $ 40,000 Revenue Variable Costs W101 $ 22,000 17,000 1,000 7,000 S (3.000) Total $ 85,000 51,000 $ 6,000 22,000 Direct Fixed Costs General Fixed Costs $ 23,000 12,000 2,000 7.000 S 2.000 3,000 7.000 $ 8.000 21.000 $ 7,000 Net Income (Loss) The general fixed costs are unavoidable ROY Company decided to drop the W101 product line to stop the loss. The company's decision to drop the W101 product line will: * Decrease net income by $4,000 Increase net income by $4,000 Decrease net income by $5,000 Increase net income by $5,000 None of the above The total net income of the company as a result of dropping the product W101 will be: $2,000 $3,000 O $11,000 O $12,000 None of the above Do you agree with the company's decision to drop the product W101? * O Agree Disagree