The Sleeping Company sells three kinds of blankets, below are the revenue and cost of Product Fine, one of the companys product-line. Product Soft Sales. $100,000 Cost of goods sold. 65,000 Gross profit 35,000 Operating expenses 40,000 Net operating income (loss) $(5,000) Fixed costs included in the cost of goods sold and operating expenses were as follows: Product Soft Cost of goods sold $ 25,000 Selling and administrative expenses 20,000 Total fixed expenses $ 45,000 What would be the effect on the companys overall profit if Product Soft was dropped?

Select one:

a. Decrease by $30,000

b. Increase by $15,000

c. Decrease by $40,000

d. Increase by $10,000