Outdoors Inc Fixed Manufacturing Costs Included in Cost of Goods Sold Amount

Outdoors Inc. manufactures two products: Canoes and Kayaks. The results of operations for 2012 follow. $\begin{array}{l}\begin{array}{lll}\\\text { Units}\\\text { Sales}\\\text { Less: Cost of Goods Sold}\\\text { Gross Margin}\\\text { Less: Selling Expenses}\\\text { Operating Income}\\\end{array}\begin{array}{lll}\text { Canoes }\\12.000 \\\$ 288,000 \\\underline{216,000}\\72,000 \\\underline{72000}\\\underline{\$ 0} \end{array}\begin{array}{lll}\text { Kayaks}\\4,000 \\\$ 800,000 \\\underline{516,000} \\ 284,000 \\\underline{159,000} \\\underline{\$ 125,000} \\\end{array}\begin{array}{lll}\text { Total }\\16,000\\\$ 1,080,000\\\underline{732,000}\\{348,000}\\\underline{231,000}\\\underline{\$ 125.000}\end{array}\end{array}$ Fixed manufacturing costs included in cost of goods sold amount to $2 per unit for Canoes and $19 per unit for Kayaks. Variable selling expenses are $5 per unit for Canoes and $21 per unit for Kayaks; remaining selling amounts are fixed. Assume Outdoors Inc. eliminates Canoes but there is no reduction in company-wide fixed manufacturing overhead costs. Instead, Outdoors Inc. uses the available capacity to produce and sell an additional 2,000 units of Kayaks. Under this scenario, the impact on operating income would be:

A) $0.
B) $36,000 decrease.
C) $102,000 increase.
D) $138,000 increase.
E) $180,000 increase.