Seidman Company manufactures and sells 27,000 units of product X per month. Each unit of product X sells for $17 and has a contribution margin of $8. If product X is discontinued, $94,000 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:

Multiple Choice

• Decrease by $122,000.

• Increase by $122,000.

• Increase by $216,000.

• Decrease by $216,000.