The management of Your Corporation is considering dropping a product. Data from the company's accounting system appear below:

Sales	$100,000
VC	$78,000
Fixed manufacturing costs	$19,000
Fixed selling and administrative costs	$31,000

Investigation has revealed that $18,850 of the fixed manufacturing expenses and $10,150 of the fixed selling and administrative expenses will continue if the product is discontinued. What is the effect of this discontinuance on net operating income?

Group of answer choices

increase by $ 7,000

decrease by $24,000

increase by $ 1,000

decrease by $ 7,000

decrease by $ 1,000