The following information pertains to Chrysnta Company's three products:

A B C

Unit sales per year 300 450 300

Selling price per unit $10.00 $15.00 $ 10.

Variable costs per unit 3.50 10.00 12.00

Unit contribution margin $6.50 $ 5.00 $(2.00)

Contribution margin ratio 65% 33.33% (20)%

Assume that product C is discontinued and an extra space is rented for $800 per month. All other information remains the same as the original data.

Annual profits will:

a.increase by $9,600.

b.increase by $9,000.

c.decrease by $600.

d.decrease by $2,000.