Springer Company used the report that follows to decide what products to drop. Product A Product B Product C Total Sales $20,000 $15,000 $30,000 $65,000 Cost of goods sold Variable 4,000 9,000 15,000 28,000 Salaries (direct fixed)* 2,000 2,000 6,000 10,000 General and admin. expenses Variable 2,000 4,000 3,000 9,000 Advertising (direct fixed)* 1,000 2,000 1,000 4,000 Common fixed costs** 4.000 3,000 6,000 13,000 Operating income $ 7,000 $(5,000 $(1.000) $ 1.000 Direct fixed costs are specific to the product **Allocated based on sales dollars Given this information, discontinuing Product B would cause the company's operating income to decrease by $2,000 decrease by $5,000 increase by $2,000 increase by $5,000