Wedding Supply is trying to decide whether or not to continue distributing reception supplies. The following information is available for Wedding Supply's business segments. Reception Supplies Bridal Dresses Floral Decorations Sales $160,000 $110,000 $210,000 Variable costs 84,000 50,000 120,000 Contribution margin 76,000 60,000 90,000 Direct fixed costs 50,000 20,000 25,000 Allocated common fixed costs. 30,000 25,000 30,000 Net Income ($ 4,000) $ 15,000 $ 35,000

If reception supplies are dropped, floral decorations sales are expected to increase by 20%. What impact will the increase in floral decorations have on overall profitability?

Group of answer choices:

a. Income will increase by $7,000.

b. Income will increase by $16,000.

c. Income will decrease by $18,000.

d. Income will decrease by $8,000.