Typical monthly operating income performance for Division $x$ of XYZ Incorporated is as follows:

Sales

Variable expense

Contribution margin

Fixed expense

Operating income

$[$$$160,000],[120,000],[$$$40,000],[50,000],[$$$(10,000)]$

$xYZ$ Incorporated is considering discontinuing Division $x$ and has determined that $50\%$ of fixed expenses are common to all XYZ divisions and that $50\%$ are direct fixed expenses of Division $x.$ If Division $x$ is discontinued, the impact on XYZ$\text{'}$s operating income will be:

Multiple Choice

a $$25,000$ increase In operating income.

a $$10,000$ increase in operating income.

a $$25,000$ loss of operating income.

a $$15,000$ loss of operating income.