The budgeted income statement for a business for the upcoming year is presented as follows:

	Product F	Product G	Product H	Total
Sales	$300,000	$220,000	$340,000	$860,000
-Variable expenses	180,000	190,000	220,000	590,000
Contribution margin	$120,000	$30,000	$120,000	$270,000
-Direct fixed expenses	5,000	5,000	4,000	14,000
-Common fixed expenses	45,000	45,000	36,000	126,000
Operating income (loss)	$70,000	($20,000)	$80,000	$130,000

Management is considering the discontinuance of the manufacture and sale of Product G. This action would have no effect on the sales of Products F and H. What is the expected change in the firms net income that would result from dropping Product G?

	A.	$20,000 increase
	B.	$25,000 decrease
	C.	$25,000 increase
	D.	$20,000 decrease
	E.	none of these