Seidman Company manufactures and sells 26,000 units of product X per month. Each unit of product X sells for $15 and has a contribution margin of $6. If product X is discontinued, $35,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products. If product X is discontinued, Seidman Company's monthly income before taxes should:

• Increase by $121,000.
• Decrease by $121,000.
• Increase by $156,000.
• Decrease by $156,000.