The most recent income statement for the South Branch of Harbor Bank is presented below:

Sales $57,000

Variable costs 31,500

Avoidable fixed costs 13,500

Unavoidable fixed costs 20,000

Operating loss $(8,000)

Harbor Bank is thinking about eliminating the South Branch. If the branch is eliminated, Harbor Bank's operating income will ________.

Question 7 options:

	decrease by $31,500
	increase by $8,000
	increase by $25,500
	decrease by $12,000