Ulmer Company has three product lines, X, Y, and Z. The following information is available:

	X	Y	Z
Sales	$20,000	$30,000	$8,000
Variable costs	12,000	16,000	5,000
Contribution margin	$ 8,000	$14,000	$ 3,000
Fixed costs: Avoidable	3,000	6,000	2,000
Fixed costs: Unavoidable	2,000	3,000	1,800
Operating income	$ 3,000	$ 5,000	$( 800)

Assuming product line Z is discontinued and the space formerly used to produce product Z is rented for $4,000 per year, operating income will:

A.increase $2,200.

B.increase $4,800.

C.increase $3,000.

D.increase $4,000.