San Bernardino Industries has three product lines, A, B and C. The following information is available:

A B C

Sales $100,000 $90,000 $88,000

Variable costs - 76,000 - 48,000 - 79,000

Contribution margin $24,000 $42,000 $9,000

Fixed costs:

Direct - 9,000 - 18,000 - 11,000

Common - 6,000 - 9,000 - 4,400

Operating Income $9,000 $15,000 $(6,400)

If product line C is discontinued and the space formerly used to manufacture product C is rented for $15,000, operating income will increase by:

a.$13,000

b.

$6,000

c.

$21,400

d.

$17,000