Sunland Toys' management is considering eliminating product $A,$ which has been showing a loss for several years. The company's

annual income statement, is as follows:

Advertising expense $-$ Specific to each product.

Depreciation expense $-$ Specific to each product; no other use available, no resale value.

Corporate expenses $-$ Allocated based on number of employees. What would be the effect on income if product A were dropped?

Net income would

decrease by