Shine Bright Company Has Three Product Lines: D, E, and F

Shine Bright Company has three product lines: D, E, and F. The following information is available:

- Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming Shine Bright Company drops line F and is able to double the production and sales of product line E without increasing fixed costs. What affect will this have on operating income?

A) Operating income will increase $6,000.
B) Operating income will increase $20,000.
C) Operating income will decrease $6,000.
D) Operating income will decrease $14,000.