Vela Co. has provided the following information for its two product lines:

Vela Co. is planning to drop product A. Product A's fixed manufacturing overhead can be avoided as a result, but total corporate overhead is unaffected. Given this information. How would net operating income change if they drop product A?

\begin{tabular}{|l|r|r|} \hline & Product A & Product B \\ \hline Sales & $50,000 & $200,000 \\ \hline Direct Materials & 10,000 & 50,000 \\ \hline Direct Labor & 22,000 & 80,000 \\ \hline VariableManufacturingOverhead & 6,000 & 30,000 \\ \hline Contribution Margin & $12,000 & $40,000 \\ \hline Fixed Manufacturing & 9,000 & 12,000 \\ \hline Overhead & & \\ \hline Allocated Corporate & & \\ \hline Overhead & & \\ \hline \end{tabular} Net operating income will decrease by $3,000. Net operating income will decrease by $12,000. Net operating income will increase by $12,000 Net operating income will increase by $4,000. Net operating income will decrease by $4,000. Net operating income will increase by $3,000