ShoppingKart, Inc. is a supermarket having three operating departments. An income statement for the most recent month of operations is listed below.

	GENERAL	MEAT	PRODUCE	TOTAL
Sales	$50,000	$40,000	$10,000	$100,000
Variable Costs	30,000	16,000	5,000	51,000
Contribution Margin	20,000	24,000	5,000	49,000
Fixed Costs:
Direct, avoidable	5,000	4,000	3,500	12,500
Common, allocated based on sales dollars	10,000	8,000	2,000	20,000
Profit (Loss)	$ 5,000	$12,000	$( 500)	$ 16,500

If Shopping Kart, Inc. were to drop the Produce line and make no other changes, income for the month would be:

A-$12,000 B-$15,000 C-$16,000 D-$17,000

The space currently being used by Produce could be converted into a Deli Department. If this were done, expected Deli operations are as follows: sales of $20,000; variable costs of $8,000; avoidable fixed costs of $3,000. Assuming no changes for General and Meat departments, income for the month would be:

A-$23,500 B-$24,000 C-$24,500 D-some other

amount