San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $530,000 and have traceable fixed operating costs of $560,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $460,000 and San Ruiz income will:

Multiple Choice

A. increase by $30,000.

B. increase by $70,000.

C. increase by $430,000.

D. decrease by $70,000.

E. decrease by $430,000.