Sunland Charles, the controller of Inca Industries, has prepared an analysis to help management determine whether one of Incas departments should be eliminated. The departments contribution margin is $53000. The fixed expenses charged to the department total $80000. Of the fixed expenses, Charles estimates that $39000 of those expenses would be eliminated if the department were discontinued. Based on Charless analysis, if the department is eliminated, Incas overall operating income would

increase by $14000 per year.

decrease by $27000 per year.

decrease by $14000 per year.

decrease by $12000 per year.