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Item Product Line A Product Line B Product Line C 28 Sales $30, 000 $45, 000 $12,000 Variable costs $18,000 $24, 000 $ 7,500 Contribution margin $12,000 $21,000 $ 4,500 Fixed costs: 2 Avoidable $ 4,500 $ 9,000 $ 3,000 points Unavoidable $ 3,000 $ 4,500 $ 2,000 8 01:55:50 Pre-tax operating income $ 4,500 $ 7,500 $ (500) Diamond is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pre-tax operating income for the firm will likely: Multiple Choice O Decrease by $2,700 O Decrease by $1,500 O Increase by $1,500 O Be unchanged O Increase by $1,200